Mike Wilson, Chief U.S. Equity Strategist and Chief Investment Officer at Morgan Stanley, recently stated that gold is in a long-term bull market that has lasted approximately 25 years, making it an indispensable defensive asset in current investment portfolios. He believes that one of the core market narratives for 2026 will be "commodity rotation," spreading from gold and silver to rare earths, energy, and even semiconductors. The firm's commodity strategists maintain a target price of $5,200/ounce for gold in the second half of 2026, but note that a significant rebound in ETF inflows will be crucial for gold to reach this target. Morgan Stanley's baseline forecast is for the Federal Reserve to cut interest rates once in January 2027 and once in March 2027; if this policy path materializes, it is expected to provide support for gold.