Thursday, November 15th, 2018 MST

$1300 gold forecast by year end

Morgan Stanley, a longtime establishment investment house, recently released a report on gold that stated: “We rarely use gold in our asset allocation, but occasionally there are opportunities and currently we see one of them.”  Morgan Stanley & Co.’s global commodity strategist has a $1,300 per ounce price target on gold by year end.

$1,300 by year end would be a strong move and would result in gold gaining a lot of attention in the investment community.

The report noted two potential developments that could fillip the price of gold, “a recession induced by a Federal Reserve policy error” and the $200 billion worth of tariffs that Trump is threatening to lay on Chinese imports.

Interestingly, the report noted that “US (stock) markets continue to shrug off global stresses like economic slowing, rising trade tensions, a strengthening dollar, EM currency volatility and an inflation threat.”

Morgan Stanley proffered the usual establishment caveats that gold pays no interest or dividends; further MS does not see gold as a long-term holding.  That position could change as other developments surface.

Interestingly, MS noted that “investors do not seem prepared for anything but a continuation of the current upward trend, something that is hard to fathom if US tariffs on $200 billion in Chinese goods go into effect.”

 

4 Responses to “$1300 gold forecast by year end”

  1. olde reb

    What would a spokesman for the largest hoard of gold in the world declare in a press release if they were strapped for cash and foresaw the need for liquidity in one to two months?

    In a related query, have we seen world-wide increases in fiat printed money lately ?

    Reply
  2. Morris Medina

    The sky has been falling for how long now? Meanwhile the old adage invest for the long term has changed to grab gains quickly. Don’t just sit in your hands and be spoon fed by the gurus that helped contribute to the ‘mess. Take the time to understand how to profit from the sentiment at hand. Investors are making money regardless if the market goes up, down or sideways. The fear mongers take advantage of those that are ‘scared’ Stop being scared and fight back with KNOWLEDGE! At least if you lose some money along the way you have an understanding towards an adjustment.

    Reply

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