Morgan Stanley: gold price won’t see $1,300 again

The gold price on Tuesday continued to hover below the $1,300 an ounce level, down more than $80 an ounce from 2014 highs reached mid-March.
US investment bank Morgan Stanley added to the negative sentiment, forecasting the gold price to average $1,250 this quarter, decline to an average $1,168 in the second half of 2014 and weaken further to $1,138 next year.
The commodity analysts at Morgan Stanley are quoted in Barron’s blog that record demand from China “won’t be enough to keep gold’s price above $1,200 per ounce in the coming year, much less help it rise”.

The bank blames a slide in the value of the Chinese currency, the yuan, against the US dollar for weakening demand.

Signs of a drop-off in the world’s top importer of gold are already visible:

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