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For investors seeking momentum, SPDR Gold Trust ETF (GLD - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up 14% from its 52-week low price of $111.06 per 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 on where it might be headed:
GLD in Focus
This is the largest and most-popular ETF in the gold space with AUM of $33.2 billion and average daily volume of around 7.7 million shares. The fund tracks the price of gold bullion measured in U.S. dollars, and kept in London under the custody of HSBC Bank USA. Expense ratio comes in at 0.40% (see: all the Precious Metal ETFs here).
Why the Move?
The precious metal space, especially gold, has been an area to watch lately given hopes of easing monetary policy, which bodes well for the yellow metal. Lower interest rates will continue to weigh on the dollar and raise the yellow metal’s attractiveness as it does not pay interest like fixed-income assets. Additionally, global growth worries driven by deepening U.S.-China trade tensions, disappointing economic data across the globe, and geopolitical tensions spurred demand for safe-haven assets. Notably, gold is considered a great store of value and hedge against market turmoil.
More Gains Ahead?
Currently, GLD has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, it seems that GLD might remain strong given a higher weighted alpha of 7.2% and low 20-day volatility of 9.3%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
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Gold ETF (GLD) Hits New 52-Week High
For investors seeking momentum, SPDR Gold Trust ETF (GLD - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up 14% from its 52-week low price of $111.06 per 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 on where it might be headed:
GLD in Focus
This is the largest and most-popular ETF in the gold space with AUM of $33.2 billion and average daily volume of around 7.7 million shares. The fund tracks the price of gold bullion measured in U.S. dollars, and kept in London under the custody of HSBC Bank USA. Expense ratio comes in at 0.40% (see: all the Precious Metal ETFs here).
Why the Move?
The precious metal space, especially gold, has been an area to watch lately given hopes of easing monetary policy, which bodes well for the yellow metal. Lower interest rates will continue to weigh on the dollar and raise the yellow metal’s attractiveness as it does not pay interest like fixed-income assets. Additionally, global growth worries driven by deepening U.S.-China trade tensions, disappointing economic data across the globe, and geopolitical tensions spurred demand for safe-haven assets. Notably, gold is considered a great store of value and hedge against market turmoil.
More Gains Ahead?
Currently, GLD has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, it seems that GLD might remain strong given a higher weighted alpha of 7.2% and low 20-day volatility of 9.3%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>