Morgan Stanley: ETF demand is the key factor driving gold to reach $5,200

Jinse Finance reports that on June 22, Morgan Stanley said that if there is no significant rebound in ETF capital inflows, its bullish target for gold to reach $5,200 in the second half of the year will become harder to achieve. Morgan Stanley still remains optimistic about gold’s long-term outlook, because easing tensions in the Middle East and falling oil prices help alleviate concerns about inflation. However, at its most recent meeting, the U.S. Federal Reserve took a hawkish stance, reinforcing expectations that interest rates will remain at high levels for a longer period and increasing the opportunity cost of holding non-yielding assets such as gold.
GLDX1.17%
XAUUSD-0.89%
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