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Gold ETF (GLD) Hit a 52-Week High
Investors seeking momentum may have SPDR Gold Shares (GLD - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of GLD are up approximately 28.2% from their 52-week low of $168.30/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.
GLD In Focus
This ETF is designed to track the spot price of gold bullion. The SPDR Gold Shares reflects the performance of the price of gold bullion, less expenses. The fund charges 40 bps in fees.
Why The Move?
After wild swings, gold showed a strong rebound lately on cues of Fed rate cuts. 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. Moreover, gold is viewed as a safe-haven asset. The recent rise in geopolitical tensions in the Middle East also led to strength in gold prices.
More Gains Ahead?
The fund has a positive weighted alpha of 22.26. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.