Morgan Stanley has adjusted its gold price target for the second half of 2026, lowering it to $5,200 per ounce from a previous optimistic projection of $5,700. According to NS3.AI, this revision follows an approximate 8% decline in gold prices since February 28. The bank attributes the diminished outlook to several factors, including increased real yields, selling by exchange-traded funds (ETFs), central bank sales, and postponed expectations for Federal Reserve rate cuts. Morgan Stanley identifies the anticipated rate cuts by the Federal Reserve in September and December as key drivers for a potential recovery in gold prices.