Key Updates Overnight and This Morning (August 20-21)

Morgan Stanley: Gold Price Expected to Break $5,000 by 2027

Morgan Stanley believes that after gold breaks above $4,450 per ounce, its price is likely to surpass $5,000 by 2027 or earlier. The bank stated that an improving macroeconomic environment is boosting demand for gold ETFs, as market expectations of Fed rate hikes gradually fade and the dollar weakens. Strong central bank buying and firmer physical demand further support gold prices. Despite high long-term yields, gold remains resilient, also indicating growing investor concerns over fiscal risks, including high government debt and potential currency depreciation risks. Morgan Stanley expects the Fed to hold rates steady until 2026 but warns that upcoming U.S. inflation data and Fed officials' remarks could heighten market volatility. USDC Treasury minted an additional 250 million on the Solana chain.