Gold Prices Rise as Fund Managers Turn Bullish on Precious Metal

Gold prices have been rising after a six-month correction, and some analysts believe it's not just a technical move, but a sentiment reversal among institutions. According to Bank of America's Global Fund Manager Survey, fund managers now consider gold undervalued for the first time in over three years.

The survey, which gathered responses from 198 panelists managing $540 billion in assets, showed that the net percentage of managers considering gold as overvalued has fallen to its lowest level since February 2024. In January, 45% judged it overvalued, a record since 2012.

The reversal in sentiment is accompanied by a strong macro conviction: 58% of managers identified stagflation as their baseline 12-month scenario. However, the survey also shows that growth expectations are at their highest since February 2026, and inflation fears have dropped significantly.