Gold Price Decline Triggers Precious Metals Sell-Off; Morgan Stanley Forecasts $4,500 Target

Deep News10:20

The price of spot silver extended its intraday losses, falling by 1% to $61.37 per ounce. Spot gold retreated below $4,150 per ounce, marking a daily decline of 0.34%.

On July 7th, the precious metals sector opened lower. Shares of Zhaojin International Gold Co.,Ltd. (000506.SZ) touched the daily downside limit, with stocks including Hunan Silver Co.,Ltd. (002716.SZ), Chifeng Jilong Gold Mining Co.,Ltd. (600988.SH), Xingye Silver & Tin Co.,Ltd. (000426.SZ), Xiaocheng Technology (300139.SZ), and Western Gold Co.,Ltd. (601069.SH) following the downward trend.

According to analysis from Navellier & Associates, gold may recover in the second half of 2026, supported by central bank purchases and potential monetary easing policies in Europe. The firm anticipates that the price of gold will rebound to $4,500 per ounce following an approximate 25% decline from the record high set in January.

The minutes from the Federal Reserve's meeting held on June 16th-17th are scheduled for release this Wednesday. This meeting, the first chaired by Vice Chair for Supervision Michael S. Barr, may offer the market additional insights into policymakers' views on the interest rate outlook.

In a report released last Friday, JPMorgan Chase & Co. (JPM.US) noted that demand for gold in key sectors may not be as robust as previously anticipated. The bank projects that the gold price will be capped at around $4,300 per ounce in the third quarter, reaching $4,500 per ounce in the fourth quarter.

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