Gold Correction Nears End as BCA Research Turns Bullish; Weak Dollar and Central Bank Buying Provide Long-Term Support
智通财经2026/07/31 13:01- Independent research institution BCA Research has released its latest view, stating that the recent pullback in gold is nearing its end. The headwinds from rising real interest rates are gradually fading, making now a good time to reallocate to gold.
- The institution pointed out that an expected weakening US dollar will become a new support for gold, while ongoing gold purchases by global central banks, geopolitical uncertainties, and the trend of reserve asset diversification all provide strong long-term fundamental support for gold prices.
- From a market sentiment perspective, gold previously came under pressure and retreated due to rising real interest rates. However, such assets often show strong recovery resilience once interest rate expectations stabilize, and the current price level has started to attract renewed attention from some medium- to long-term allocation funds.
- On the technical side, the valuation pressure on gold has been partially released after the adjustment. If the dollar simultaneously weakens, forming a resonance, gold prices are likely to gradually stabilize and return to an upward trajectory. In addition, systematic purchases by central banks have further limited the downside risk of a deep correction.
- Going forward, attention will focus on how US inflation and employment data impact the path of real interest rates, as well as whether new geopolitical disturbances emerge. These variables will jointly determine the pace and sustainability of gold’s rebound.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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