Gold: Playing A Potential Mania
BCA Research

The long-term uptrend in gold prices is intact, but investors should wait before buying.

A recent Special Report by our Global Investment Strategy service argues that the case for a long-term bull market in gold rests on four pillars. First, global liquidity settings will remain plentiful because inflation will stay low. Second, investor demand for gold will rise in response to higher gold prices after an extended bear market. Third, central bank selling could take time to re-emerge after the wave of liquidation in recent years. Finally, Chinese and Indian private sector gold demand should improve as their wealth and incomes rise. However, in the near term, gold prices are vulnerable to cyclical headwinds and could correct further. We would view significant pullbacks as buying opportunities.