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Gold ETF (DGL) Hits a New 52-Week High

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For investors looking for momentum, Invesco DB Gold Fund (DGL - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 36.4% from its 52-week low price of $42.50/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

DGL in Focus

This ETF seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Gold Index Excess Return plus the interest income from the Fund's holdings of primarily US Treasury securities and money market income less the Fund's expenses. It has AUM of $160.7 million and charges 78 basis points (bps) in annual fees.

Why the Move?

The second wave of coronavirus pandemic is sparking fears of a global economic recession among investors as the outbreak is disrupting global supply chains followed by shutdown of economic activities. The market participants also seem to be worried about the pandemic’s impact on corporate earnings. Accordingly, in the wake of the current scenario, investors are rushing to safe-haven assets like gold. This is making funds like DGL an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 36.90, which gives cues of further rally.

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