Back to top
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
Gold Bullion ETF (BAR) Hits New 52-Week High
For investors seeking momentum, GraniteShares Gold Trust (BAR - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up 23.7% from its 52-week low price of $16.03 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 on where it might be headed:
BAR in Focus
This ETF is designed to track the spot price of gold bullion. It charges investors 17 basis points a year in fees (see: all Precious Metals ETFs here).
Why the Move?
After wild swings, gold showed a strong rebound lately. As the Fed indicated that it will adopt a less-hawkish tone for the rest of the year, the U.S. dollar is likely to stay subdued in the near term. This is a great scope for the outperformance of the gold bullion ETF BAR as precious metals are priced in the U.S. dollar. A low interest rate environment is a tailwind for the non-yielding assets like gold. Also, the banking crisis in the United States and Europe has benefitted the safe-haven asset gold.
More Gains Ahead?
The fund has a Zacks Rank #3 (Hold). The fund has a positive weighted alpha of 8.80, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.