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Morgan Stanley cuts gold, silver price forecasts

Morgan Stanley also downgraded the whole base metal sector saying growing oversupply and excess capacity was cause for caution

Reuters  |  Bangalore 

Morgan Stanley lowered its gold and silver price forecasts, citing the possibility of reduced US Federal Reserve monetary stimulus or outright withdrawal from the current quantitative easing programme. "With investor demand for safe-haven assets waning against the backdrop of a strengthening the dollar and rising US bond yields, market conditions for gold and silver have become markedly less favourable," the bank said in a note. The bank cut its 2013 gold price forecast by five per cent to $1,409 an ounce and its 2014 estimate by 16 per cent to $1,313. Morgan Stanley ...

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First Published: Tue, June 25 2013. 22:20 IST