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Gold ETF (AAAU) Hits New 52-Week High

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For investors seeking momentum, Goldman Sachs Physical Gold ETF (AAAU - Free Report) is probably on the radar. The fund just hit a 52-week high and has moved up 38.7% from its 52-week low of $21.27 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: 

AAAU in Focus

The London Gold Fixed Price, often referred to as the London Gold Fix, is the benchmark price for gold that is determined twice daily by a group of five major banks in the London bullion market. The ETF AAAU charges 18 bps in fees per year (see: all the Precious Metals ETFs here).

Why the Move?

Gold has been an area to watch lately, given the rise in volatility and increased safe-haven demand driven by U.S. tariff threats and the likelihood of a full-fledged trade war. The introduction of tariffs also raises the likelihood of unfavorable inflation data, which further boosts the prospects of the fund. Additionally, the recent market sell-off highlights the importance of allocation to the yellow metal.

More Gains Ahead?

Currently, AAAU has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 38.38 (as per Barchart.com), which gives cues of a further rally.


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