The latest CFTC data for the week ending August 18 shows money managers boosted gross long positions in Comex gold futures by 5,961 contracts, bringing the total to 154,595. While short positions also edged up, the net length of 141,648 contracts reflects an 18% increase over the last three weeks. This shift marks the longest consecutive growth streak for the metal since June.

Bank of America’s August Global Fund Manager Survey suggests the rally may have room to run. The report identifies gold as being at its most undervalued state since March 2023, with 16% of managers now viewing the asset as undervalued, up from 6% in July. Candace Browning Platt, head of global research at BofA, noted that while current buying patterns align with a $4,000 price point, further acceleration is required to hit the $5,000 mark.

Despite the bullish momentum, the road ahead is not entirely clear. Bart Melek, head of commodity strategy at TD Securities, warns that rising crude oil prices could exacerbate inflation fears, potentially pressuring the Federal Reserve to hike interest rates. While debasement concerns provide a floor for prices, Melek suggests that immediate surges toward a $5,350 target face resistance from the volatile short-term rate environment.