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Gold ETF (SGOL) Hit a 52-Week High
Investors seeking momentum may have abrdn Physical Gold Shares ETF (SGOL - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of SGOL are up approximately 15.1% from their 52-week low of $17.35/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
SGOL In Focus
This ETF is designed to track the price of Gold Bullion. The Aberdeen Standard Physical Gold Shares ETF seeks to reflect the performance of the price of gold bullion, less the expenses of the Trust. The fund charges 17 bps in fees.
Why The Move?
After wild swings, gold showed a strong rebound lately on cues of Fed rate cuts. There are talks that the Fed may cut rates by June. This upward movement underscored gold’s second consecutive weekly gain. Investors should note that if the Fed cuts rates, this would subdue the U.S. dollar. The subdued U.S. dollar and a decline in U.S. treasury bond yields would bolster the demand for the yellow metal.
More Gains Ahead?
The fund has a positive weighted alpha of 12.10. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.