For investors seeking momentum, VanEck Merk Gold Trust (OUNZ Quick QuoteOUNZ - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up 27.3% from its 52-week low price of $13.55 per share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

OUNZ in Focus

This product seeks to provide investors with a convenient and cost-efficient way to buy and hold gold through an exchange-traded product with the option to take physical delivery of gold. It charges 40 bps in fees per year (see: all the Precious Metal ETFs here).

Why the Move?

The precious metals space, especially gold, has been an area to watch lately given the rise in new coronavirus cases as the economy opens. New coronavirus cases in the United States climbed to their highest level in two months. Florida, Oklahoma and South Carolina reported record increases in new cases on Wednesday. Seven other states reported record-high infections earlier in the week. The second wave of disease has raised the appeal for safe-haven buying. Notably, gold is considered a great store of value and hedge against market turmoil.

More Gains Ahead?

Currently, OUNZ has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, it seems that the fund might remain strong given a higher weighted alpha of 26 and low 20-day volatility of 14.71%. As a result, there is definitely still some promise for investors, who want to ride on this surging ETF a little further.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>