Morgan Stanley predicts gold to struggle
Adam Pike, News Editor
25 Feb 2014, 10:37 a.m.
Commodity strategists at U.S. bank Morgan Stanley are forecasting gold will struggle to maintain its current value and are predicting gold will average $1,160 for 2014 and $1,138 for 2015. They believe gold will face considerable headwinds as real interest rates, bond yields and U.S. dollar rise.
The strategists considers gold’s recent rise as a mere bounce that was overdue after five negative quarters and heavy outflows from exchange traded products.