We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Weakening dollar, persistent geopolitical and economic uncertainty, and rising market expectations of further Fed rate cuts continue to support investor interest in gold. Gold price has risen 3.58% over the past five days and 55.39% year to date.
Strong fundamental indicators could extend gold’s gains into 2026, boosting the case for increased portfolio allocation. According to Reuters, gold prices jumped on Monday, reaching a two-week high, on disappointing U.S. data, rising Fed rate cut expectations and additional support from a weaker dollar.
Rate Cuts, Weaker Dollar Make the Case for Gold Stronger
The greenback's value tends to move inversely with interest rate adjustments by the Fed. Interest rate cuts by the Fed make the dollar less attractive to foreign investors, as this weakens the U.S. dollar. Per TradingView, the U.S. Dollar Index (DXY) has fallen 0.52% over the past five days and 8.17% year to date. The index has recorded an all-time decline of 16.88%.
A weaker U.S. dollar generally leads to higher demand for gold, pushing its price upward as it becomes more affordable for buyers holding other currencies.
According to the CME FedWatch tool, markets are anticipating a 64.6% likelihood of another interest rate cut in December.
What Else is Pushing Gold Higher?
The U.S. government shutdown that began on Oct. 1 has added to the already uncertain economic backdrop in the country. Additionally, according to the abovementioned article, earlier this month, U.S. consumer sentiment slid to its weakest level in almost three and a half years on concerns over the economic impact of the prolonged government shutdown.
Per Kevin Hassett, White House economic adviser, fourth-quarter U.S. economic growth could slip into negative territory if the shutdown drags on, as quoted in the Reuters article.
According to Yahoo Finance, most of the drivers behind the strong rally, including elevated economic and geopolitical uncertainties as well as continued central bank buying and retail demand, continue. In this context, gold remains an attractive investment option.
ETFs to Consider
The yellow metal remains a crucial hedge for investors amid growing macroeconomic and geopolitical uncertainty. Below, we highlight a few funds where investors can increase their allocation to gain greater exposure to gold.
Physical Gold ETFs
Investors can consider SPDR Gold Shares (GLD - Free Report) , iShares Gold Trust (IAU - Free Report) , SPDR Gold MiniSharesTrust (GLDM - Free Report) , abrdn Physical Gold Shares ETF (SGOL - Free Report) and iShares Gold Trust Micro (IAUM - Free Report) to increase their exposure to the yellow metal.
With a one-month average trading volume of 22.28 million shares, GLD is the most liquid option, ideal for active trading strategies. However, implementing an active strategy in the current landscape may not be the most effective approach.
Adopting a long-term passive investment strategy becomes the go-to approach for investors to weather short-term market storms. Investors should not be discouraged by any likely decline in gold prices. Instead, they should adopt a "buy-the-dip" strategy.
GLD has gathered an asset base of $133.51 billion, the largest among the other options. Regarding annual fees, GLDM and IAUM are the cheapest options, charging 0.10% and 0.09%, respectively, which makes them more suitable for long-term investing.
Gold Miners ETFs
These ETFs focus on gold miners, usually magnifying gold’s gains and losses. They provide access to the gold mining industry, not the commodity’s price.
With a one-month average trading volume of 32.09 million shares, GDX is the most liquid option. GDX has also gathered an asset base of $21.25 billion, the largest among the other options. Regarding annual fees, SGDM and SGDJ are the cheapest options, charging 0.50%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ETFs to Consider as Gold Jumps to 2-Week High
Weakening dollar, persistent geopolitical and economic uncertainty, and rising market expectations of further Fed rate cuts continue to support investor interest in gold. Gold price has risen 3.58% over the past five days and 55.39% year to date.
Strong fundamental indicators could extend gold’s gains into 2026, boosting the case for increased portfolio allocation. According to Reuters, gold prices jumped on Monday, reaching a two-week high, on disappointing U.S. data, rising Fed rate cut expectations and additional support from a weaker dollar.
Rate Cuts, Weaker Dollar Make the Case for Gold Stronger
The greenback's value tends to move inversely with interest rate adjustments by the Fed. Interest rate cuts by the Fed make the dollar less attractive to foreign investors, as this weakens the U.S. dollar. Per TradingView, the U.S. Dollar Index (DXY) has fallen 0.52% over the past five days and 8.17% year to date. The index has recorded an all-time decline of 16.88%.
A weaker U.S. dollar generally leads to higher demand for gold, pushing its price upward as it becomes more affordable for buyers holding other currencies.
According to the CME FedWatch tool, markets are anticipating a 64.6% likelihood of another interest rate cut in December.
What Else is Pushing Gold Higher?
The U.S. government shutdown that began on Oct. 1 has added to the already uncertain economic backdrop in the country. Additionally, according to the abovementioned article, earlier this month, U.S. consumer sentiment slid to its weakest level in almost three and a half years on concerns over the economic impact of the prolonged government shutdown.
Per Kevin Hassett, White House economic adviser, fourth-quarter U.S. economic growth could slip into negative territory if the shutdown drags on, as quoted in the Reuters article.
According to Yahoo Finance, most of the drivers behind the strong rally, including elevated economic and geopolitical uncertainties as well as continued central bank buying and retail demand, continue. In this context, gold remains an attractive investment option.
ETFs to Consider
The yellow metal remains a crucial hedge for investors amid growing macroeconomic and geopolitical uncertainty. Below, we highlight a few funds where investors can increase their allocation to gain greater exposure to gold.
Physical Gold ETFs
Investors can consider SPDR Gold Shares (GLD - Free Report) , iShares Gold Trust (IAU - Free Report) , SPDR Gold MiniShares Trust (GLDM - Free Report) , abrdn Physical Gold Shares ETF (SGOL - Free Report) and iShares Gold Trust Micro (IAUM - Free Report) to increase their exposure to the yellow metal.
With a one-month average trading volume of 22.28 million shares, GLD is the most liquid option, ideal for active trading strategies. However, implementing an active strategy in the current landscape may not be the most effective approach.
Adopting a long-term passive investment strategy becomes the go-to approach for investors to weather short-term market storms. Investors should not be discouraged by any likely decline in gold prices. Instead, they should adopt a "buy-the-dip" strategy.
GLD has gathered an asset base of $133.51 billion, the largest among the other options. Regarding annual fees, GLDM and IAUM are the cheapest options, charging 0.10% and 0.09%, respectively, which makes them more suitable for long-term investing.
Gold Miners ETFs
These ETFs focus on gold miners, usually magnifying gold’s gains and losses. They provide access to the gold mining industry, not the commodity’s price.
Investors can consider VanEck Gold Miners ETF (GDX - Free Report) , Sprott Gold Miners ETF (SGDM - Free Report) , VanEck Junior Gold Miners ETF (GDXJ - Free Report) and Sprott Junior Gold Miners ETF (SGDJ - Free Report) .
With a one-month average trading volume of 32.09 million shares, GDX is the most liquid option. GDX has also gathered an asset base of $21.25 billion, the largest among the other options. Regarding annual fees, SGDM and SGDJ are the cheapest options, charging 0.50%.