I noticed that Morgan Stanley has lowered its gold target for the second half of the year to $5,200 per ounce, down from the previous $5,700. It has been a significant move in the precious metals market, considering that prices have fallen about 8% since the end of February. According to them, the decline in precious metals is due to several factors: higher real yields, ETF gold sales, central bank sales, and the market delaying hopes of Fed rate cuts. What’s interesting is that Morgan Stanley still sees potential for a rebound in precious metals if the Fed cuts rates as expected in September and December. In short, for those following this sector, the downward movement could be temporary.