Morgan Stanley has revised its second-half 2026 price target for the gold market for the rest of 2026 to $5,200 per ounce, down significantly from a bullish $500,700. This follows a six-week sell-off that has completely changed the tone of the entire trade. However, the bank maintains that the updated price target represents significant upside due to current gold futures trading in the high $4,700s to low $4.800s. The bank attributes this support to robust central bank demand, currency debasement concerns, and geopolitical tensions. Prior to the Middle East conflict, gold prices had risen by 8% since the conflict started, with higher oil prices stoking inflation fears, rising real yields, and fading hopes for near-term Fed rate cuts. The decline in gold was attributed to Turkey's official demand and India's slow pace of bullion import buying.