Morgan Stanley Predict Potential Major Gold Level $ 800

A dramatic drop in the gold began shortly after China released a report on the gold reserves for the first time in 6 years. On Sunday night, gold fell in thin trading session with volume of traded below $ 1.100 per ounce and held near a low level since then. While some observers gold quick enough to say that the report from China showed an error, Morgan Stanley said the long-term trend indicates a further decline. Analysts led by Tom Price today said that gold could fall to reach the level of $ 800 per ounce, according to a Bloomberg News report. They predicted that the era of the gold price stability is now coming to an end.

Gold and silver have been in a downward trend since May, due to the easing of the risk of deflation, in anticipation of rising interest rates the Federal Reserve, the resolution of new loans to Greece, and the collapse of China's stock exchanges (which triggered the sale of assets to cover losses), all of which has been pressing the gold price during the 8-10 weeks. So is the PBoC's announcement last week about China's gold reserves were reduced drastically, is the latest event bearish for gold. The possibility in the short term, the gold market will be driven by a drop in oil prices. While analysts expect gold will likely be stuck over the area $ 1.050, they also said that the increase in interest rates in the US, a further correction in China's stock exchanges and selling gold reserves by central banks, could trigger the worst case scenario, namely the drop in the price of gold to the level of $ 800 per ounce ,