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Gold ETF (IAU) Hits New 52-Week High
For investors seeking momentum, iShares Gold Trust (IAU - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 46.41% from its 52-week low price of $43.05/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 of where it might be headed:
IAU in Focus
The fund seeks to reflect the performance of the price of gold less the expenses. The product charges 25 bps in annual fees (See: All Precious Metals ETFs).
Why the Move?
Gold has been an area to watch lately, given the introduction of reciprocal tariffs by President Donald Trump. The tariffs have resulted in an escalating trade war and increased the likelihood of a global recession, prompting investors to turn their attention to safe-haven assets.
The recent weakening of the dollar is a positive for the precious metal. Additionally, the possibility of the Fed cutting interest rates faster than expected and central banks increasing purchases of the precious metal bodes well.
More Gains Ahead?
Currently, IAU has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance in the near term, with a positive weighted alpha of 47.12 (as per Barchart.com), which gives cues of a further rally.