Morgan Stanley projects gold prices will exceed $5,000 per ounce by 2027.
The bank revised its outlook after the metal reached its previous $4,450 fourth-quarter target ahead of schedule.
Analysts expect the Federal Reserve to maintain current interest rates through 2026.
Strong central bank purchases and renewed demand for gold-backed ETFs support the bullish forecast.
A weakening U.S. dollar provides additional tailwinds for the precious metal.
Gold is increasingly decoupling from long-term real yields as investors prioritize fiscal risks and high government debt.
The bank warns that the upward trajectory will likely include periods of volatility.