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Gold ETF (GLD) Hits New 52-Week High

For investors seeking momentum, SPDR Gold Trust ETF GLD is probably on radar. The fund just hit a 52-week high and is up 26.5% from its 52-week low of $150.57 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 of where it might be headed:

GLD in Focus

SPDR Gold Trust ETF tracks the price of gold bullion measured in U.S. dollars and kept in London under the custody of HSBC Bank USA. It is an ultra-popular gold ETF, with AUM of $60 billion. SPDR Gold Trust ETF charges 40 bps in fees per year from investors (see: all the Precious Metals ETFs here).

Why the Move?

The precious metals space, especially gold, has been an area to watch lately, given the surge in the metal price. The weak U.S. dollar and a fresh wave of bank crisis in the United States once again raised the appeal for the yellow metal as a safe haven and a store of value. Notably, gold is often used as a means of preserving wealth during times of financial and political uncertainty. It usually does well when other asset classes struggle.

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, a weighted alpha of 12.26 and the 20-day volatility of 13.29% shows that there is definitely still some promise for risk-aggressive investors, who want to ride on this surging ETF.

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SPDR Gold Shares (GLD): ETF Research Reports

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Zacks Investment Research