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Gold ETF (GLD) Hits New 52-Week High

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For investors seeking momentum, SPDR Gold Trust ETF (GLD - Free Report) is probably on their radar now. The fund just hit a 52-week high, and is up about 26.5% from its 52-week low price of $100.23 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:

GLD in Focus    

GLD tracks the price of gold bullion measured in U.S. dollars, and kept in London under the custody of HSBC Bank USA. It is an ultra-popular gold ETF with AUM of $38.7 billion and expense ratio of 0.40% (see: all the Precious Metal ETFs here).

Why the Move?

The precious metal space has been an area to watch lately given the increase in volatility in the market. This is especially true with U.K. surprising the world by voting in favor of leaving the EU. Apart from this, renewed worries about the health of the global economy have perked up demand for the yellow metal as a store of value and hedge against market turmoil. Additionally, reduced expectation for a rate hike anytime soon will keep the appeal of gold bullion alive in the coming months.

More Gains Ahead?

Currently, GLD has a Zacks ETF Rank of 3 or ‘Hold’ rating, so it is hard to get a handle on its future returns one way or the other. It seems that this fund might remain strong given a high weighted alpha of 17.00% and a mediocre 20-day volatility of 22.19%. As a result, there is still some promise for investors who want to ride on this surging ETF.

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