For investors looking for momentum, SPDR GOLD SHARES (GLD – Free report) is probably on radar. The fund has just reached a 52 -week summit and is up 39.19% compared to its low price of 52 weeks of $ 228.52 / action.
But are there more gains in store for this FNB? Let’s take a quick look at the fund and short -term perspectives to have a better idea of his management:
GLD in the home
This ETF is designed to follow the cash flow price of gold bars. The product invoices 40 BPS in annual costs (see: all ETF of precious metals).
Why move?
Gold has been an area to be monitored recently, given the increase in volatility and increased safe demand. The uncertainty focused on prices, the purchase of the central bank, the persistent geopolitical friction and the increase in inflation expectations have provided solid rear winds for gold.
In addition, the increase in expectations of interest rate drops from September is well increased. The value of the greenback tends to move in conversely with the adjustments of interest rates by the Fed. Interest rate drops by the Fed make the dollar less attractive for foreign investors, as this weakens the US dollar.
More to come to come?
Currently, GLD has a Rank # 3 from Zack Etf (HOLD) with an average risk perspective. However, it could continue its high short -term performance, with a positive weighted alpha of 36.78 (according to Barchart.com), which gives indices of another rally.
