Morgan Stanley (NYSE:MS) Raises Gold Projection for 2011

As gold prices continue to break records on a weekly basis, projections continue to rise based on a number of factors, and Morgan Stanley (NYSE:MS) has raised its forecast for gold prices in response.

Morgan Stanley, "Accelerating weakness in the U.S. currency, driven by fears of renewed quantitative easing to confront sluggish U.S. growth, is proving to be a boon to commodity markets."

At a support level, Morgan sees gold holding at about $1,315 for 2011, while under a bull scenario rising to as high as $1,512.

Morgan noted they like other commodities and commondity stocks, including copper and iron ore. They see iron ore rising to $135 a ton in 2011.

Two copper companies they like are Kazakhmys Plc and Xstrata Plc.