MS citing dovish Federal Reserve, a weakening USD dollar, uncertain global economic outlook, lower yields.
- Real yields close to zero would reduce demand for yielding USD assets
- could increase demand for gold
- negative territory could generate considerable further upside for gold's price
Gold price forecast
- to average USD1435 in H2 of this year
- 2020 USD1,338
Strong price through H1 2020, then stabilising, lower as rates are kept on hold, economic activity recovers
MS add risks to view are skewed to the upside
t for /oz
MS' Fed outlook is for a 50bp rate cut in July
