BCA Maintains Gold Bullish Outlook but Warns on ETF Speculative Risk
BCA retains its bullish stance on gold, citing ongoing safe-haven demand and stable central bank buying. It warns that a surge in speculative positions in gold ETFs and futures, which have reached multi-month highs, could trigger another short-term pullback.
1. BCA's Bullish Gold Outlook
BCA has reaffirmed a long position in gold, pointing to persistent geopolitical uncertainties and steady purchases by central banks as key drivers. Analysts note that official sector buying remains robust, underpinning physical demand and supporting prices despite mixed economic data.
2. Speculative Flow Warnings
The firm highlights that net speculative positions in COMEX gold futures and related ETF inflows have climbed to multi-month highs. Such concentrated bets, coupled with the potential for profit-taking, raise the risk of a swift correction that could pressure gold-backed ETFs like AAAU.