For investors seeking momentum, GraniteShares Gold Trust (BAR Quick QuoteBAR - Free Report) is probably on the radar. The fund just hit a 52-week high and moved up 42% from its 52-week low of $17.95 per share. 

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 of where it might be headed:

BAR in Focus

GraniteShares Gold Trust is designed to seek the performance of the price of gold. The Trust holds only LBMA good delivery bars stored in a vault domiciled in London, United Kingdom. BAR charges investors 17 bps in annual fees (see: all the Precious Metals ETFs here).

Why the Move?

Gold has been an area to watch lately, given the surge in the metal price. The bullion has been rising on looming Fed rate cuts. Lower rates raise the yellow metal’s attractiveness compared to fixed-income assets such as bonds. Notably, gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity costs of holding non-yielding bullion and weaken the U.S. dollar. 

Geopolitical tensions and uncertainty related to elections also raised the appeal for gold. Gold is considered a store of wealth for investors. It is often used as a means of preserving wealth during times of financial and political uncertainty and usually does well when other asset classes struggle. Further, strong physical buying from central banks and investors in Asia has also been a pillar of support.

More Gains Ahead?

Currently, BAR has a Zacks ETF Rank #3 (Hold). It is hard to get a handle on its future returns one way or the other. However, a weighted alpha of 35.41 and a 20-day volatility of 11.27% show that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.