Morgan Stanley recommends avoiding gold

<p>Gold should be avoided, Morgan Stanley has stated.</p>

The price of gold has continued to slip steadily this week and Morgan Stanley has now advised staying away from the precious metal.

Although traditionally seen as a safe haven, gold's value has not increased in recent weeks despite the US government shutdown having an impact on global markets.

Morgan Stanley analyst Joel Crane said: "We recommend staying away from gold."

He added that the bank is sticking to its 2014 average forecast of $1,313 (£823) per ounce. The company recently noted that sees "little immediate upside to the gold price either in the immediate future or next year".

The price of gold has slipped back back below $1,300 per ounce this week as the US government shutdown shows no sign of coming to an end.

US president Barack Obama has continued talks with Republicans over a new budget, but has so far been unable to strike a deal.

Australian stocks have also been affected this week by gold's value falling slightly.

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