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Gold Sinking to $800 in Worst-Case Outlook at Morgan Stanley

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Gold’s been mauled this week as commodities sank to a 13-year low. It may get a lot worse, according to Morgan Stanley, which said that under its worst-case scenario bullion may tumble to $800 an ounce.

To get there would require U.S. policy makers to start raising interest rates, another correction in China’s stock markets and a selldown of reserves by central banks, analyst Tom Price said in a report. The metal is more likely to trade at about $1,050 an ounce, according to the bank, which left its 2015 forecast unchanged. The price closed at $1,094.10 an ounce on Thursday.