|

Gold: Bull market conviction broadens – Societe Generale

Societe Generale analysts Michael Haigh and Jeremy Sellem describe a broad-based Gold bull market in 2026, driven by ETFs, futures and options positioning. They highlight strong physical ETF inflows, near-record futures exposure by money managers and a structurally bullish options skew. The report stresses that multiple independent demand channels are reinforcing each other, supporting a constructive stance on Gold over the medium term.

Bullish signals across all channels

"Gold has entered a new phase of its 2026 bull run, one defined less by speculative momentum and more by broad-based, structural conviction across every category of market participant. What began as a geopolitical shock, evolved over the following months into something far more durable: a synchronised build-up of physical, futures, and options exposure that now spans retail investors, professional money managers, and derivatives traders alike."

"In August, gold ETFs registered a substantial 201 tonnes of net inflows, marking the third-largest monthly addition on record in tonnage terms after now famous world events: February 2009 and the stimulus package announced by the newly inaugurated Obama administration, and March 2020 with the start of the lockdown for Covid globally. This month's inflow surpassed the strong inflows recorded in March 2022 following Russia's invasion of Ukraine and in September 2012 after the Federal Reserve's announcement of QE3."

"In notional exposure terms (contracts x price x contract size), money managers' net positioning reached the second-largest long exposure on record, behind only January 2026, when gold broke through $5,400/oz to an all-time high. This time, with prices roughly $1,000/oz lower, the scale of the dollar exposure is even more striking: it is no longer simply a price story."

"Overall, investors appear to be pricing near-term uncertainty via puts while steadily building call exposure further out the curve, consistent with a constructive medium-term outlook for gold."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY drops to an over one-month low, around 156.00 after Japan's CPI report

USD/JPY attracts heavy follow-through selling on Friday, dropping to the 156.00 neighborhood, a one-month low, as Japan's National CPI report reaffirms bets for an imminent BoJ rate hike and boosts the Japanese Yen. Moreover, the recent steep fall in US bond yields counters hawkish Fed expectations and geopolitical risks, undermining the US Dollar and exerting additional pressure on the currency pair.

Gold seems vulnerable near August lows; eyes $4,000 break amid Fed hike bets

Gold touches a fresh low since early August during the Asian session on Friday, eyeing the key $4,000 psychological mark. Oil-driven inflation fears reinforce December Fed hike bets and continue to undermine the non-yielding bullion, which fails to benefit from the recent steep fall in US bond yields and the prevailing US Dollar selling bias. Moreover, the overnight breakdown below a trading-range support backs the case for further depreciation.



Bitcoin falls 4% as chip stocks plunge 6.7% and oil surges
Bitcoin (BTC) fell below $82,000 on Thursday as the crypto market joined a broader market sell-off driven by concerns over artificial intelligence (AI) spending, rising oil prices and escalating geopolitical tensions involving the US and Iran. The top crypto fell 4% to $81,130 as macro fears weighed on prices across the digital asset market.
The Bank of England just got its clearest reason to hike. Here's what it's really watching

UK inflation as measured by the CPI accelerated to 3.5% YoY in September, up from 3.1% in August, according to the Office for National Statistics. This is the highest level since October 2025, exceeding economists' expectations of 3.4% and pushing inflation further from the BoE's 2% target.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.