Gold topping $4,000 has investors chasing the most crowded trade

[Gold Ingots and Coins]
asbe/iStock via Getty Images

Bank of America’s latest October Fund Manager Survey revealed that being long gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) has emerged as the most crowded trade among global investors.

According to the report, 43% of fund managers identified being long gold as the market’s most heavily concentrated position, narrowly surpassing being long the Magnificent Seven tech group, which ranked second at 39%.

The findings come as gold prices have soared to record levels, recently breaching the $4,000/oz marker and now hovering near $4,137/oz. Year to date, the precious metal has surged roughly 58%, reinforcing its status as the market’s favored defensive asset amid persistent economic uncertainty.

When asked about their gold exposure, 39% of fund managers reported holding virtually no gold (around 0% allocation), while 19% maintain a 2% position and 16% hold roughly 4%. Overall, the weighted average allocation across all respondents stands at just 2.4%.

Aside from being long gold, the other most crowded trades according to the fund manager survey include being long the Magnificent Seven group, short the U.S. dollar (DXY [https://seekingalpha.com/symbol/DXY]), long crypto, long banks, and being long on the U.S. 2 Year Treasury (US2Y [https://seekingalpha.com/symbol/US2Y]).

See the visual chart below provided by BofA:
[BofA]
Crowded Trades (BofA)

GOLD AND GOLD MINING ETFS: (NYSEARCA:GLD [https://seekingalpha.com/symbol/GLD]), (NYSEARCA:IAU [https://seekingalpha.com/symbol/IAU]), (NYSEARCA:SGOL [https://seekingalpha.com/symbol/SGOL]), (NYSEARCA:OUNZ [https://seekingalpha.com/symbol/OUNZ]), (NYSEARCA:BAR [https://seekingalpha.com/symbol/BAR]), (NYSEARCA:GDX [https://seekingalpha.com/symbol/GDX]), (NYSEARCA:GDXJ [https://seekingalpha.com/symbol/GDXJ]), (NYSEARCA:NUGT [https://seekingalpha.com/symbol/NUGT]), (NASDAQ:RING [https://seekingalpha.com/symbol/RING]), and (NYSEARCA:DUST [https://seekingalpha.com/symbol/DUST]).

MAGNIFICENT SEVEN ETFS: (BATS:MAGS [https://seekingalpha.com/symbol/MAGS]), (BATS:MAGX [https://seekingalpha.com/symbol/MAGX]), (NYSEARCA:QQQU [https://seekingalpha.com/symbol/QQQU]), and (NYSEARCA:QQQD [https://seekingalpha.com/symbol/QQQD]).

MORE ON MARKETS

* 10 defensive dividend plays as tensions between the U.S. and China continue [https://seekingalpha.com/news/4503910-10-defensive-dividend-plays-as-tensions-between-the-us-and-china-continue]
* AI bubble fears emerge as top market risk, BofA survey shows [https://seekingalpha.com/news/4503946-ai-bubble-fears-emerge-as-top-market-risk-bofa-survey-shows]
* HSBC reveals 10 stock picks to watch as Q3 earnings kick off [https://seekingalpha.com/news/4503653-hsbc-reveals-10-stock-picks-to-watch-as-q3-earnings-kick-off]
* Deutsche Bank forecasts a positive 2026 outlook as it says the U.S. economy shows resilience [https://seekingalpha.com/news/4503640-deutsche-bank-forecasts-a-positive-2026-outlook-as-it-says-the-us-economy-shows-resilience]
* If Washington and Beijing don’t blink, markets could face a hard fall, Mike Wilson says [https://seekingalpha.com/news/4503607-if-washington-and-beijing-don-t-blink-markets-could-face-a-hard-fall-mike-wilson-says]