For investors seeking momentum, SPDR Gold Shares GLD is probably on the radar. The fund just hit a 52-week high and is up 70.79% from its 52-week low price of $236.13/share.
But are there 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:
GLD in Focus
This ETF is designed to track the spot price of gold bullion. The product charges 40 bps in annual fees (See: All Precious Metals ETFs).
Why the Move?
Gold has been an area to watch lately, given the rise in volatility and increased safe-haven demand. Trade uncertainty, central bank buying, persistent geopolitical frictions and growing concerns about a potential AI bubble have provided strong tailwinds for gold.
Additionally, rising market expectations of further Fed rate cuts also bode well. 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.
More Gains Ahead?
Currently, GLD 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 70.98 (as per Barchart.com), which gives cues of a further rally.
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SPDR Gold Shares (GLD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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