- 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.
|Today last price||1826.08|
|Today Daily Change||8.18|
|Today Daily Change %||0.45|
|Today daily open||1817.9|
|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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