Gold to Break $5,000/oz in H2 2027, Silver’s Run to $120 Driven by Real Demand – Morgan Stanley’s Gower

Amy Gower of Morgan Stanley forecasts gold will surpass $5,000 per ounce in the second half of 2027 despite near-term pressure from elevated bond yields and dollar strength. She highlights firm support above $4,000 driven by robust central bank purchases from China and Poland plus worries over long-term fiscal sustainability. Algorithmic traders are fueling short-term swings while ETFs keep accumulating gold and central banks may resume buying on dips. The gold-dollar correlation has strengthened temporarily but could reverse. On silver, Gower stresses its run to $120 stemmed from genuine physical demand tied to solar power and ETF inflows rather than hype alone, even as industrial factors have weakened this year.