UNITED STATES April 21 2015 11:36 AM
NEW YORK (Scrap Register): Greece’s uncertain future in the eurozone, global quantitative easing, loose monetary policies and continued demand out of Asia will all provide much needed support for the gold market, but these factors might not be enough to create another bull market, said Morgan Stanley in a snippet.
Analysts at Morgan Stanley expect prices to fall over the next two years as investors leave the marketplace.
“Our Global Cross Asset team highlight in their report that negative rates will continue to drive flow into USD credit, supporting both the house view of ongoing USD strength and our unchanged generally subdued gold price outlook,” analysts added.
Gold futures settle lower on Monday. Upbeat earnings as well as economic stimulus measures in China helped buoy confidence in the stock market, luring investors away from gold.
The most active June gold contract on the COMEX division of the New York Mercantile Exchange settled down $10.00 at $1,193.10 an ounce on Monday.
The dollar gained ground on major rivals Monday, likely contributing more pressure to prices for dollar-denominated gold.