Gold Price: Entry Points 'Are Coming' as Volatility Rises, BofA Says

Gold Market Overview - Gold is currently considered overbought but still underinvested [1] - Client portfolios currently allocate approximately 0.5% to gold, below the historical high of 1.1%, indicating room for increased allocation [1] - ETF inflows experienced a significant surge, increasing by 880% year-over-year last month, raising concerns about sustainability [2] Investment Strategy - Industry suggests buying on dips, with potential entry points identified during monthly or weekly price movements of $100-$200 [2][3] - Increased volatility is anticipated, potentially creating entry points for investment [3] Role of Gold in Portfolios - Gold is viewed as an asset with a role to play in portfolio diversification [5][6] - Optimal risk-return portfolios may allocate around 75%, while incentive banks hold between 10-15% of assets in gold [5] - Gold's primary value lies in portfolio diversification and price exposure, rather than direct performance in the real economy [6]