Morgan Stanley Says Gold Could Drop Below $800

On Sunday evening, gold plunged in thin trading to below $1,100 an ounce and has been hovering near multi-year lows ever since. While plenty of gold bugs were swift to dismiss the China report as misleading, Morgan Stanley is pointing to longer-term trends that are sending the shiny stuff lower.

Analysts led by Tom Price now say the metal could fall as low as $800 an ounce, as reported by Bloomberg News.

They figure that the era of price stability that once ruled the precious metals complex is now coming to an end. The below Morgan Stanley chart shows a rather stable line for gold, silver, palladium and co. while other commodities such as iron ore have seen more volatility. 

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza