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.