• Gold could drop to sub-$1,800 levels this year, according to Morgan Stanley. 
  • Weak inflation and global economic recovery could weaken demand for the yellow metal.

Analysts at the investment banking giant Morgan Stanley foresee gold falling below $1,800 per ounce by the end of 2021 as the rise in inflation is likely to be tepid at best. 

"Morgan Stanley's economists forecast the US inflation to rise a little over 2% over the next two years. So this is hardly the runaway type of scenario for inflation that gold would seem best suited for," Andrew Sheets, Chief Cross-Asset Strategist for Morgan Stanley, said in a recent report, according to Kitco News. 

Sheets added that gold's momentum looks weak, and signs of global economic recovery could complicate matters further for the safe-haven yellow metal. 

Morgan Stanley sees the US economy growing 6.5% this year, followed by 5% growth in 2022.

Gold is currently trading near $1,826 per ounce at press time, representing a nearly 4% year-to-date decline. Prices reached a record high of $2,075 in August 2020.

Technical levels

XAU/USD

Overview
Today last price 1826.08
Today Daily Change 8.18
Today Daily Change % 0.45
Today daily open 1817.9
 
Trends
Daily SMA20 1838.65
Daily SMA50 1858.33
Daily SMA100 1868.69
Daily SMA200 1857.97
 
Levels
Previous Daily High 1827.11
Previous Daily Low 1816.16
Previous Weekly High 1855.5
Previous Weekly Low 1807.86
Previous Monthly High 1959.42
Previous Monthly Low 1802.8
Daily Fibonacci 38.2% 1820.34
Daily Fibonacci 61.8% 1822.93
Daily Pivot Point S1 1813.67
Daily Pivot Point S2 1809.44
Daily Pivot Point S3 1802.72
Daily Pivot Point R1 1824.62
Daily Pivot Point R2 1831.34
Daily Pivot Point R3 1835.57

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD retreats further below 1.0900 amid risk aversion

EUR/USD retreats further below 1.0900 amid risk aversion

EUR/USD has accelerated its decline below 1.0900 after having spent the first half of the day fluctuating in a tight range near that level. The risk-averse market environment, as reflected by falling US stocks, helps the US Dollar gather strength and weighs on the pair in the American session. 

EUR/USD News

GBP/USD loses the 1.2400 threshold on US Dollar demand

GBP/USD loses the 1.2400 threshold on US Dollar demand

GBP/USD came under  bearish pressure and declined towards 1.2360 in the second half of the day on Monday. The cautious market mood ahead of this week's high-impact events seems to be supporting the US Dollar and capping the pair's upside. 

GBP/USD News

Gold: Investors defend the $1,900 threshold ahead of critical first-tier events Premium

Gold: Investors defend the $1,900 threshold ahead of critical first-tier events

Spot gold trades uneventfully for a second consecutive day, hovering around $1,923 a troy ounce. The Greenback started the week with a positive tone, although gains were modest ahead of the multiple first-tier events scheduled for later this week.

Gold News

Here’s why Ethereum-killer Cardano whales are shedding their ADA holdings

Here’s why Ethereum-killer Cardano whales are shedding their ADA holdings

Cardano network’s large wallet investors have started selling or redistributing their holdings. ADA price has broken out of the multi-month downtrend and the next bullish target represents a 10% climb. 

Read more

Lucid Group adds 12% on Monday to Friday's 43% gain

Lucid Group adds 12% on Monday to Friday's 43% gain

Lucid Group (LCID) has reversed course in Monday's premarket. Shares of LCID first shed more than 6% early in Monday's premarket, before rising more than 12% later in the session. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures