They are also predicting an average silver price of $35 this year and $42 this year - which I believe are EXTREMELY conservative estimates. Their 2012 average price is $1,845, which I actually agree with (considering we're only around $1,650 now and haven't even touched $1,800 yet in 2012).
They are saying QE3 could happen in the first half of this year.
"Investor demand for gold as a hedge is likely to keep gold prices
elevated and Morgan Stanley analysts are bullish on gold in 2012."
"While the current strength in the USD is a headwind to USD gold
prices, we expect aggressive Fed action, including and the likely
adoption of QE3 in 1H12, to be positive for gold, even if the USD
continues to strengthen."
Source: Morgan Stanley