Morgan Stanley Gold and Silver Price Outlook

In a report released this week, Morgan Stanley (NYSE:MS) analysts Tom Price and Joel Crane outline the firm’s Q2 2015 price expectations for a variety of metals. The firm’s thoughts on copper, which Resource Investing News has already outlined, aren’t overly optimistic, and unfortunately for precious metals fans, the case is much the same for gold and silver

Looking at gold, the report highlights the metal’s weak Q1 price, noting that it was tamped down in large part by “[p]ersistent US NFP ‘beats’ and USD strength.” The firm believes Q2 won’t be substantially different, and states that “negative rates will continue to drive flow into USD credit, supporting both the house view of ongoing USD strength and our unchanged generally subdued gold price outlook.”

That said, Morgan Stanley admits that there’s some price upside for the yellow metal, with the most significant possible price driver being activities in Europe. Specifically, “any resumption of debate over Greece’s debt position” could spur the gold price upward. Further political tension in Eastern Europe is another factor that could provide some momentum for gold.

Of course, demand from India may provide a boost in price for the yellow metal as well — for awhile at least. Wedding season in the country lasts

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