Morgan Stanley has lowered its gold and silver price forecasts for 2013 and 2014 on prospects that the US Federal Reserve will scale back monetary stimulus as the economy recovers.
"With investor demand for safe-haven assets waning against the backdrop of a strengthening US dollar and rising US bond yields, market conditions for gold and silver have become markedly less favourable," the bank said in a note.
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The bank has slashed its 2013 gold price forecast by 5% to US$1,409 an ounce and its 2014 estimate by 16% to US$1,313.
For silver, Morgan Stanley lowered its 2013 price forecast by 14% to US$23.39 an ounce and its 2014 estimate by 29% to US$21.01 an ounce.
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