Morgan Stanley has warned that investors are misreading gold’s recent moves due to the current macro headwinds. The firm's metals and mining Commodity Strategist, Amy Gower, stated that while gold typically falls first as liquidity works against it, this time is different. The macro backdrop has shifted and markets are pricing in an environment where rates could jump or even rise. Gower noted that since the Iran war began, gold has lost 17% of its value and about 10.5% based on its latest price. Despite this, Gower remains committed to the broader thesis that remains in place. Gold's recent decline is in line with a broader macro reset where inflationary pressures and interest rate expectations have been front and center.