Bank of America survey shows gold least overvalued in 2.5 years as stagflation fears dominate
Institutional fund managers are warming back up to gold after months of calling it overcrowded, according to BofA's June global survey
Gold just got its reputation back. After months of fund managers side-eyeing the metal as overpriced and overcrowded, Bank of America’s latest Global Fund Manager Survey shows that the net perception of gold being overvalued has dropped to its lowest level since February 2024.
Earlier this year, roughly 45% of surveyed managers considered gold overvalued, a record high reading going back to 2012. Now, the crowd that was loudly calling gold a bubble trade has gone noticeably quieter.
What the survey actually shows
The June 2026 survey, conducted between June 5 and June 11, polled 198 institutional fund managers collectively overseeing $540 billion in assets under management.
In February 2026, gold was sitting near the top of BofA’s “most crowded trade” list, with approximately 50% of respondents flagging it as overly popular. That congestion reading has since cooled considerably.
A full 58% of the surveyed managers identified stagflation as their dominant economic outlook for the next 12 months.
How we got here
By the start of this year, enthusiasm had reached a fever pitch. That 45% overvaluation reading wasn’t just high, it was the highest BofA had recorded since 2012.
Bank of America has maintained a bullish long-term stance on gold, with prior research updates forecasting the metal could exceed $5,000 per ounce.
What this means for investors
The BofA Global Fund Manager Survey polled nearly 200 managers controlling $540 billion, and the reduced overvaluation perception removes one of the key psychological barriers that had been hanging over gold.
If 58% of institutional managers genuinely expect stagflationary conditions over the next year, their portfolio construction will naturally tilt toward inflation hedges and real assets.
The survey made no mention of Bitcoin or any other digital assets. In prior cycles, crypto and gold have been positioned as competing safe-haven narratives, and the absence of crypto from this particular conversation suggests that, at least among this cohort of traditional institutional managers, gold remains in a category of its own when it comes to macro hedging.