Gold Target Cut by Morgan Stanley Seeing ‘More Pain to Come’
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Gold will extend declines this year as gains in equity markets reduce the need for haven assets and increased regulation hurts risk appetite, according to Morgan Stanley, which lowered its bullion forecasts.
The 2014 target was cut 12 percent to $1,160 an ounce and the prediction for 2015 reduced 13 percent to $1,138, analysts Peter Richardson and Joel Crane wrote in a report today. Gold remains under pressure as the global recovery gains traction, increasing the risk of higher interest rates, they wrote.