Morgan Stanley's Gower: Fed Holding Rates Through '26
Amy Gower, Morgan Stanley Lead Metals & Mining Strategist, discussed the firm's house view on interest rates and its implications for gold. Morgan Stanley expects the Federal Reserve to keep rates on hold through 2026, contrasting with market expectations of approximately 1.6 rate hikes by year-end. Gower emphasized that the Fed's policy decisions will be crucial for gold's trajectory, particularly given the significant role of exchange traded funds (ETFs) in gold demand, which closely track Fed actions. A stable rate environment would support gold, while further rate hikes could trigger increased ETF selling, potentially weighing on gold prices. (Source: Bloomberg)
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Morgan Stanley's prediction of Fed rate hikes through 2026 leads to increased market expectations for further tightening, triggering a sharp rise in bond yields. This creates a negative impact on gold ETF holdings as investors seek safer havens and sell off their positions. Confirmation indicators: US Treasury yield curve steepens significantly, exceeding the historical average by at least 10 basis points within two weeks. The S&P 500 exper
Confirmation indicators
- ◆US Treasury yield curve steepens significantly, exceeding the historical average by at least 10 basis points within two weeks. The S&P 500 exper
Morgan Stanley's prediction of Fed rate hikes through 2026 leads to increased market expectations for further tightening, triggering a sharp rise in bond yields. This creates a negative impact on gold ETF holdings as investors seek safer havens and sell off their positions. Confirmation indicators: US Treasury yield curve steepens significantly, exceeding the historical average by at least 10 basis points within two weeks. The S&P 500 exper
Confirmation indicators
- ◆US Treasury yield curve steepens significantly, exceeding the historical average by at least 10 basis points within two weeks. The S&P 500 exper
Morgan Stanley's prediction of Fed rate hikes through 2026 leads to increased market expectations for further tightening, triggering a sharp rise in bond yields. This creates a negative impact on gold ETF holdings as investors seek safer havens and sell off their positions. Confirmation indicators: US Treasury yield curve steepens significantly, exceeding the historical average by at least 10 basis points within two weeks. The S&P 500 exper
Confirmation indicators
- ◆US Treasury yield curve steepens significantly, exceeding the historical average by at least 10 basis points within two weeks. The S&P 500 exper