Washington, July 23 (ANI): Gold for immediate delivery sank to USD 1,086.18 an ounce on Monday, the lowest level since March 2010, upsetting Morgan Stanley’s 2015 forecast of it being valued at USD 1,190 an ounce.
According to Bloomberg generic pricing, gold last traded below USD 800 in 2008, and now, Morgan Stanley is predicting a repeat seven years down the line.
The drop in the price of gold even as the U.S. Federal Reserve prepares to increase borrowing costs, has, however, given a boost to the US dollar.
The Singapore-based Strait Times quoted Goldman Sachs’s Jeffrey Currie, as warning that the price of gold could drop below USD 1,000 an ounce.
Standard Chartered was quoted, as saying that the drop in the price of gold would probably extend losses in the commodities sector.
It said the rout in bullion has helped to drag the Bloomberg Commodity Index to the lowest level since 2002 as crude oil and base metals fell. (ANI)