Morgan Stanley: ETF demand rebound is key to gold price reaching $5200

Morgan Stanley stated that without a rebound in ETF fund inflows, it would be difficult to achieve the target of gold prices reaching $5200 in the second half of the year. Morgan Stanley analysts point out that ETF demand remains sensitive to the Federal Reserve's policy path, real returns, and the US dollar. Morgan Stanley is optimistic about the long-term prospects of gold, as the easing of tensions in the Middle East and the decline in oil prices will help alleviate inflation concerns. The recent meeting of the Federal Reserve had a hawkish tone, strengthening the expectation that interest rates will remain high for a longer period of time, increasing the opportunity cost of holding gold.