Morgan Stanley forecast: gold to trade above $1500 per ounce in 2020


According to the Newsmax portal, Morgan Stanley predicts that the price of gold will keep growing in 2020, while the US stock market prices could decrease.

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The bank's analysts believe that the exchange rate of the US dollar will go down due to a stronger economic growth in other countries. The forecast predicts that the price of gold will rise to $1511 per ounce, with the precious metal generally trading around the $1500 mark.

If the tariff negotiations between the US and China cease, a new global recession can ensue. In this case, the price of gold will exceed $1500 per ounce.

Even if an intermediate agreement is initially signed, gold will still show better growth in 2019 relative to 2018. The ongoing protests in Hong Kong, which have been going on for months and show no sign of stopping, can become a serious barrier to signing a trade treaty.

The gold market is currently waiting for a new growth catalyst that could help it recover its losses.


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