BofA notes that gold funds attracted its largest inflow in three months in the week to Wednesday but warns of the outlook

Citing EPFR data, BofA highlights that gold funds garnered $1.6 billion in the week to Wednesday, the largest inflow in three months. However, the firm warns that "the bad news is global tapering has begun".

As such, that could see bond/real yields start to march higher eventually and weigh on gold as well. Adding that the stronger the macro environment is in Q2/Q3, the quicker and bigger the taper will be from major central banks.

This not just only applies to gold if you consider the context. Obviously, the Fed is the key one to watch here and if they start to move towards that direction later in the year, it will also present a world of hurt for risk assets in general.

That said, if the Fed doesn't "go with the plan" and sticks to its guns as we approach Jackson Hole in August, perhaps bond markets will have some rethinking to do.