Morgan Stanley: Still optimistic about gold's future prospects, expecting the second half of the year to see gold prices at $5,200 per ounce

Morgan Stanley released a research report, saying that since the outbreak of the Middle East conflict, gold prices have seen sell-offs, leading investors to question its safe-haven role. Morgan Stanley believes that the softness in gold prices reflects the type of shock, rather than a loss of safe-haven appeal. Gold may still be sensitive to real yields, but it believes there is still upside potential in the future. Morgan Stanley also noted that supply shocks affect interest rates differently from demand shocks, and the relationship between gold and real yields is gradually returning. Physical sell-offs from central banks and ETFs have added extra pressure, but this situation has been easing. The firm remains optimistic about the outlook, forecasting that in the second half of 2026, gold prices will be $5,200 per ounce.