Morgan Stanley: ‘We Are Buyers of Gold on Weakness’

Morgan Stanley’s wealth-management business sees a buying opportunity in gold as it remains resilient despite the surge in real interest rates. Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, notes that gold’s resilience may be due to the view that the rate hike is temporary and “purely technical,” or because gold is holding up as an alternative currency when the dollar is vulnerable due to inflation and ballooning deficit-financed spending. This presents a favorable intermediate outlook for gold, encouraging buying on weakness or declines in rates.