Bank of America Spots Major Shift in Gold

Tue Sep 01 2026

Gold is drawing its strongest wave of fund demand in nearly a year, with investor inflows reaching their highest level since October 2025, according to Bank of America. The resurgence suggests investors are rebuilding defensive exposure as they reassess interest rates, the U.S. dollar and broader macroeconomic risks, potentially adding another tailwind for gold prices and gold-linked ETFs.

The latest fund-flow data show a sharp pickup in weekly demand during 2026, with the four-week moving average also moving higher. That matters because it suggests the recent strength is not simply the result of one unusually large week, but part of a broader increase in investor participation.

Demand for gold-backed ETFs has been particularly strong. Funds recorded a $6.4 billion weekly increase in holdings in August, their largest weekly gain in roughly 10 months.

The magnitude of recent flows also stands out compared with 2023 and 2024, when positioning was considerably calmer. Since the second half of 2025, weekly gold flows have periodically exceeded $6 billion, although similarly large outflows show that investor positioning remains volatile.

The renewed buying comes as investors weigh the path for interest rates and the dollar. Lower bond yields can strengthen the relative appeal of gold because the metal does not pay interest, while dollar weakness can make bullion cheaper for overseas buyers.

Bank of America strategist Michael Hartnett has continued to favor gold as protection against potential dollar weakness and broader concerns around currency debasement.

Investor Takeaway

For gold investors, the most important signal is whether the recent surge in demand becomes persistent rather than episodic.

Investors should watch weekly ETF flows, the four-week flow trend, Treasury yields and the U.S. dollar. Continued inflows alongside declining yields or a weakening dollar could reinforce the bullish setup for gold and gold ETFs such as SPDR Gold Shares (GLD).

The risk is that positioning has already become volatile. A renewed rise in yields, stronger dollar or abrupt ETF outflows could quickly challenge momentum. For now, however, the rising four-week average suggests institutional interest in gold is becoming harder to dismiss.

Source: https://www.tradingview.com