- Lower gold prices will likely boost Chinese physical demand, but won't be enough to "materially reverse" the downtrend in the metal, say Morgan Stanley analysts Peter Richardson and Joel Crane, cutting their 2014 forecast by 11.6% to $1,160 per ounce, and 2015 by 12.5% to $1,138. No surprise to the key thesis: Higher interest rates as a result of the global economic recovery gaining traction.
- Mark Hulbert reports on the work of Claude Erb whose simple interest rate correlation model says the metal will plunge to $831 per ounce should the 10-year Treasury yield rise to 4%.
- Gold ETFs: GLD, IAU, PHYS, SGOL, UGL, DGP, GLL, DZZ, UGLD, DGL, DGZ, AGOL, DGLD, GLDI, TBAR, UBG
Gold price target cut at Morgan Stanley
Jan 22 2014, 09:01 ET