Mathieu Kor
Morgan Stanley analysts remain bullish on gold (GLD), (IAU), (OUNZ), (GDX) and forecast a price of $2,650 per ounce for the fourth quarter of the year.
Amy Gower, commodity strategist at Morgan Stanley, said physical gold selling (AAAU)), (GLD), (HAUUSD: CUR) has raised the metal.
Gold is up 50% from 2022 lows and 25% since mid-February.
Central bank purchases doubled in 2022 and 2023, and retail purchases also increased, especially in China.
Despite rising gold prices, ETFs have seen “unusual” outflows since mid-2022, “suggesting a lower contribution from financial flows,” Gower said.
However, she believes that will change and expects financial flows to drive the next leg higher, said Katy L. Huberty, global head of research at Morgan Stanley, in a note.
“Interest rate cuts have historically been a positive catalyst for the gold price,” he added. US economists at Morgan Stanley believe the Fed’s rate cut cycle will begin in September.
