Morgan Stanley has released a research report stating that gold prices have experienced selling pressure since the outbreak of conflict in the Middle East, leading investors to question its role as a safe-haven asset. The firm believes the recent weakness in gold reflects the nature of the specific shock rather than a loss of its safe-haven appeal. While gold may remain sensitive to real yields, Morgan Stanley sees potential for further price appreciation. The report also notes that supply shocks impact interest rates differently than demand shocks, and the relationship between gold and real yields is returning to a more typical pattern. Additional pressure came from physical selling by central banks and ETFs, but this trend is already easing. The bank remains optimistic about the future outlook, projecting a gold price of $5,200 per ounce for the second half of 2026.