Gold With Iron Ore Seen as Least Preferred by Morgan Stanley
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Gold and iron ore will extend losses into 2015 as the dollar’s strength hurts bullion and a global glut pushes down the raw material used to make steel, Morgan Stanley said, listing the two as its least preferred metals.
Expectations of rising U.S. interest rates will generate “considerable headwinds” for gold, wrote Joel Crane, an analyst based in Melbourne. Average prices will decline each quarter, reaching $1,165 an ounce in the three months to September, the bank said. That compares with $1,218.44 today. Iron ore estimates were cut by 3 percent in 2014 and 2015.