BofA notes that gold funds attracted its largest inflow in three months in the week to Wednesday but warns of the outlook
Citing EPFR data, BofA highlights that gold funds garnered $1.6 billion in the week to Wednesday, the largest inflow in three months. However, the firm warns that “the bad news is global tapering has begun”.
As such, that could see bond/real yields start to march higher eventually and weigh on gold as well. Adding that the stronger the macro environment is in Q2/Q3, the quicker and bigger the taper will be from major central banks.