Morgan Stanley has a current gold price forecast for 2012 of $2,200 an ounce based on more stimulus from central banks, in particular the Federal Reserve, as well as a normalization of gold lease rates. Gold lease rates had trended into negative territory, a 22 year low, as demand surged to use gold as collateral for U.S. dollar loans. As liquidity needs ease in Europe and as more European banks access the U.S. dollar swap line put in place by central banks, the pressure on gold may ease.
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jeFF at 02:36 PM
