For buyers looking for momentum, Goldman Sachs Bodily Gold ETF AAAU might be on the radar. The fund simply hit a 52-week excessive and is up 45.07% from its 52-week low worth of $17.97/share.
However are extra good points in retailer for this ETF? Let’s take a fast have a look at the fund and the near-term outlook on it to get a greater concept of the place it may be headed:
AAAU in Focus
The fund seeks to replicate the efficiency of the worth of gold much less the bills. The product costs 18 bps in annual charges (See: All Precious Metals ETFs).
Why the Transfer?
Gold has been an space to observe these days, given the surge within the worth of the yellow steel, pushed by the Fed’s 50 bps charge lower in September. Gold costs are inversely associated to the worth of the buck as gold is priced in {dollars}. A charge lower by the Fed will consequence within the depreciation of the worth of the greenback. A weaker U.S. greenback usually results in larger demand for gold because it becomesmore inexpensive for patrons holding different currencies. The chance of additional rate of interest cuts towards the tip of 2024 can be a tailwind.
Thought-about a retailer of wealth and a safe-haven funding, prevailing geopolitical tensions and financial uncertainties additional assist the upside within the yellow steel.
Extra Positive factors Forward?
At present, AAAU has a Zacks ETF Rank #3 (Maintain). Nevertheless, it would proceed its robust efficiency within the close to time period, with a optimistic weighted alpha of 41.96 (as per Barchart.com), which supplies cues of an extra rally.
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