For investors seeking momentum, Goldman Sachs Physical Gold ETF AAAU is probably on the radar. The fund just hit a 52-week high and is up 42.22% from its 52-week low price of $22.55/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:
AAAU in Focus
The fund seeks to reflect the performance of the price of gold less the expenses. The product charges 18 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 have also increased the likelihood of a global recession.
The recent weakening of the dollar is a positive for the precious metal. Gold prices are inversely related to the value of the greenback as gold is priced in dollars. A weaker U.S. dollar generally leads to higher demand for gold as it becomes more affordable for buyers holding other currencies.
More Gains Ahead?
Currently, AAAU has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance in the near term, with a positive weighted alpha of 43.36 (as per Barchart.com), which gives cues of a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
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