NEW YORK(BullionStreet): American global financial services firm Morgan Stanley cut its gold price outlook for 2013 to $1773 a troy ounce.

The bank also cut silver price outlook for 2013 by 4% to $33.44 an ounce but said silver should continue to outperform gold on a relative basis this year, despite expected volatility, it added.

In a statement, Morgan Stanley however said macroeconomic conditions remain favorable for further price appreciation in the yellow metal.

The statement said the bank remain bullish on the gold price outlook in 2013 despite recent selling pressure triggered by market concerns of an earlier-than-previously-anticipated tightening in U.S. monetary policy.

The bank expect that very low nominal interest rates, an ongoing commitment to QE3, and a below-par recovery with attendant pressure on the U.S. easing will still combine to encourage investment buying of gold, despite elevated prices.

In the medium term, platinum and palladium have been "distinctly more attractive" following news of planned production cut-backs at Anglo American Platinum Ltd.'s mines, the bank said.

As such, any signs of success in executing these supply cutbacks could lead to more material gains in the platinum price later this year, it said.

"Such a development would reinforce our long-held view that platinum's historical premium to gold would eventually be restored, as platinum market fundamentals improve and investor appetite for gold as a hedge against financial market uncertainty gradually fades as the world economy and financial markets finally improve," Morgan Stanley said.

This year, the bank expects platinum to average $1,715/oz and palladium to average $708/oz.

Morgan Stanley marginally reduced its outlook on copper, aluminum, nickel and zinc prices for this year, while upping its view on lead and tin.