Gold Slips on Bearish Forecast

by Christopher Freeburn | January 22, 2014 4:43 pm

Gold Slips on Bearish Forecast

Gold fell slightly in light Wednesday trading, marking its second straight losing session.

PreciousMetalsRecap Gold Slips on Bearish Forecast

Investor interest in the precious metal was diminished after Morgan Stanley (MS[1]) slashed its 2014 average price target for gold to $1,160 per ounce, down 11.6% from its previous outlook. The bank also cut its average gold price forecast for 2015 by 12.5%. Morgan Stanley analysts indicated that gold would continue to fade as long as U.S. equities climb.

Gold futures for February delivery sank 0.3% to $1,238.60 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,243.50 and as low as $1,237.40. Bullion closed in London at $1,238, according to BullionVault.

Silver futures for March delivery dipped 0.2%, to $19.84 per ounce. Wednesday’s high for silver was $19.94, while the low was $19.77.

Metal funds sank on Wednesday.

Mining ETFs declined during the day.

Gold stocks pulled back on Wednesday.

Silver mining shares retreated during the day.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[21] contributed to this report.

Endnotes:
  1. MS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MS
  2. GLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLD
  3. IAU: http://studio-5.financialcontent.com/investplace/quote?Symbol=IAU
  4. SLV: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLV
  5. GDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDX
  6. GDXJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDXJ
  7. SIL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SIL
  8. AEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEM
  9. ABX: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABX
  10. EGO: http://studio-5.financialcontent.com/investplace/quote?Symbol=EGO
  11. GG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GG
  12. KGC: http://studio-5.financialcontent.com/investplace/quote?Symbol=KGC
  13. NEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NEM
  14. NG: http://studio-5.financialcontent.com/investplace/quote?Symbol=NG
  15. AUY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AUY
  16. CDE: http://studio-5.financialcontent.com/investplace/quote?Symbol=CDE
  17. HL: http://studio-5.financialcontent.com/investplace/quote?Symbol=HL
  18. PAAS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PAAS
  19. SLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLW
  20. SSRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSRI
  21. BullionVault: http://www.bullionvault.com/

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