Gold Ends Winning Streak

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Gold Ends Winning Streak

Gold Ends Five-Week Winning Streak, More Upside Ahead

Gold has just lost its 5-week winning streak this week, but Morgan Stanley's analysts believe that this is not the end of the Gold bull run.

With all the talks of rate cuts & a gloomy economic outlook, it makes perfect sense for Gold to score more upside in the medium to long term.

Gold Trades At $2348.75

On Friday, Gold gained 0.3% and was seen near $2348.75 but ended the week in red on accounts of a stronger greenback and other geopolitical factors.

According to Morgan Stanley, Gold prices face a choppy read high, but they will still go higher rather than a full bearish reversal.

In fact, Morgan Stanley analysts believe that several factors favour a bull case scenario for Gold. According to them, gold can go higher and reach the $2760 price level during the 2H2024 period.

Another scenario is a return to the $2K level for the Gold, but the chances of that happening are very low. This means that Gold can gain an additional $300 or something like that in the next few months.

The demand for gold is also rising, which means it now has the ability to withstand an environment with high-interest rates.

If we look back, higher rates were not good for assets like Gold, but it has started to change, as evidenced by Gold's performance in the last few months.

Morgan Stanley added that Gold is expected to have a negative correction with higher rates and yields. However, this has now changed into a positive correlation based on the last few months of performance.

Meanwhile, central banks like the PBoC are also going heavy on buying gold bullion, which is driving up the prices of spot gold.

With the central banks buying Gold along with other bullish factors, it makes sense for Gold to seek new horizons rather than look below.

In fact, a 5.94% jump was seen in the consumption of gold in China, which is enough to say that the demand for gold and price increases are real.

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