Gold – Morgan Stanley on effect of continued progress on US-China trade agreement

MS acknowledge an increased risk to their call for higher gold prices

  • H1 2020 outlook is for 1515 USD/oz
MS notes the risk of gold falling toward its bear case of USD1394/oz in H1 of 2020 if tariffs are rolled back
  • Lower prices will, though, attract buyers back in
  • Also note that they expect a weaker USD to support gold near term
  • Fed to hold through next year …. will pressure haven assets, benefit equities
MS acknowledge an increased risk to their call for higher gold prices