Bank of America’s latest Global Fund Manager Survey showed the net percentage of respondents calling gold overvalued dropped to its lowest level since February 2024.
The survey, conducted between June 5 and June 11, covered 198 fund managers overseeing $540 billion. Earlier this year, nearly 45% of respondents viewed gold as overvalued, the highest reading since 2012. The number has now fallen close to neutral as the metal retreated from its 2026 highs.
The change comes at a time when investors remain deeply worried about the economy. According to BofA, 82% of fund managers expect global growth to weaken, while a record number plan to reduce exposure to US stocks. 42% believe the US economy could enter a recession.
The latest survey suggests gold prices have pulled back enough to bring valuations closer to long-term norms. The chart from BofA shows the net percentage of investors calling gold overvalued falling sharply from around 45% earlier this year to near zero in June.
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Despite extreme pessimism on the macro outlook, investors have not moved fully into defensive positions. Cash holdings stand at 4.8% of assets, below the 6% level that Bank of America strategists associate with peak fear.
Fund managers shifted aggressively away from US stocks. The allocation moved from 17% overweight in February to 36% underweight in April, marking the largest two-month drop on record.
On the other hand, Bitcoin has failed to regain strength against gold. According to Daan Crypto, the BTC-to-gold ratio has remained inside a broad range between 10 and 37 for more than five years.
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The latest decline pushed Bitcoin down about 70% relative to gold from its peak to the February low. The chart shows the ratio currently trading around 15, close to an important resistance area near 16. Major support sits around 10, while the upper end of the range remains near 37.
Daan Crypto noted that if Bitcoin returns to previous highs on the ratio while gold prices stay unchanged, BTC would trade near $170,000.
(adsbygoogle = window.adsbygoogle || []).push({});Investor flows have remained weak across digital asset funds. Spot Bitcoin ETFs recorded $227 million in net outflows between June 14 and June 18, extending the streak of weekly outflows to six consecutive weeks.
Spot Ethereum ETFs also posted six straight weeks of outflows, losing $10.05 million during the same period. Meanwhile, spot SOL ETFs attracted $7.11 million in net inflows, XRP ETFs brought in $10.66 million, and HYPE ETFs added $27.95 million.
Related: Goldman Sachs Trims Gold Forecast by $500 as Fed Rate-Cut Bets Fade
