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Gold Mining ETF (GOEX) Hits New 52-Week High

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For investors seeking momentum, Global X Gold Explorers ETF (GOEX - Free Report) is probably on radar. The fund just hit a 52-week high, and is up 150% from its 52-week low price of $12.55 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:

GOEX in Focus

This ETF provides exposure to companies involved in the exploration of gold deposits. Canadian firms dominate the fund’s return at 50.6% followed by Australia (25.8%) and the United States (5.9%). The fund charges 65 bps in fees per year (see: all the Materials ETFs here).

Why the Move?

The gold mining space has been an area to watch lately given the rise in new coronavirus cases. New infections in the United States are double the number recorded two weeks ago. The United States has reported more than 42,000 new cases, nearly 15,000 more than Sunday last week and double the number reported on Sundays over the previous month. The second wave of disease has raised the appeal for safe-haven buying. Notably, gold is considered a great store of value and hedge against market turmoil.

More Gains Ahead?

It seems that GOEX might remain strong given a higher weighted alpha of 94.40 and 20-day volatility of 42.83%. 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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