Morgan Stanley: Gold Remains Resilient Despite Recent Pullback

Morgan Stanley analysts advise against liquidating gold positions despite a recent price decline, citing strong physical demand, fiscal tensions, and potential yield moderation as key support factors. Gold futures recently fell 3.17% to approximately $4,183 per ounce, while spot prices hovered near $4,150. Despite a 10% drop over the last six months, the firm maintains a favorable structural outlook, noting that central banks purchased 23 metric tons of gold in July, with significant buying from China and Poland. Additionally, global debt sustainability concerns continue to bolster gold's role as a hedge against market volatility.