After gold prices (GLD) fell to a 19-month low in mid-August, Morgan Stanley (MS) said that safe-haven buying in gold has fallen. The bank said, “Any hint of safe-haven buying, spurred by global trade tensions and fears of escalating emerging market volatility, has been drowned out by a conflation of bearish market drivers.” MS attributed gold’s decline to strength in the US dollar (UUP) as well as the decoupling of the US economy (SPY) (IVV) from the rest of the world. As far as interest rates (TLT) are concerned, MS is expecting a total of four rate hikes this year and two next year.
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