Morgan Stanley cuts 2013, 2014 gold, silver price forecasts
REUTERS - Morgan Stanley lowered its gold and silver price forecasts citing the possibility of reduced U.S. Federal Reserve monetary stimulus or outright withdrawal from the current quantitative easing program.
"With investor demand for safe-haven assets waning against the backdrop of a strengthening U.S. dollar and rising U.S. 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 5 percent to $1,409 an ounce and its 2014 estimate by 16 percent to $1,313.
Morgan Stanley lowered its 2013 silver price forecast by 14 percent to $23.39 an ounce and its 2014 estimate by 29 percent to $21.01 an ounce.
The bank maintained its bullish view on palladium, raising its 2013 price forecast by 1 percent to $743 an ounce, as it expects auto sector demand to remain robust.
Morgan Stanley also downgraded the whole base metal sector saying growing oversupply and excess capacity was cause for caution.
The bank, however said, the market consensus on downside risks to copper prices was too bearish, and the metal remains its preferred exposure in a challenging sector.
The bank lowered its 2013 nickel price forecast by 7 percent to $7.23 per pound, tin by 7 percent to $10.08 per pound, copper by 3 percent to $3.42 per pound and aluminum by 2 percent to $0.89 per pound.
(Reporting by Shrutee Sarkar in Bangalore)
- Tweet this
- Share this
- Digg this
- Wall St. finally turning on Amazon as Bezos magic fades
- Wall Street finally turning on Amazon as Bezos magic fades
- Two dead, four wounded after student opens fire at Washington state school
- Two killed, four wounded in Washington state school shooting
- WHO vaccines boss signs up as Ebola trial guinea pig
The latest Reuters poll of 20 economists taken over the past week shows Asia's third-largest economy will likely grow 5.5 percent this fiscal year and 6.4 percent the next, slightly better than 5.3 percent and 6.3 percent expected in the July poll. Full Article
Euro zone risks "relapse into recession" without structural reforms - Draghi. Full Article
Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw” Full Article