Gold could drop below $1,800 by the end of 2021 – Morgan Stanley


  • 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

 

 

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