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Gold ETF (IAU) Hits New 52-Week High

Sanghamitra Saha

For investors seeking momentum, iShares Gold Trust (IAU) is probably on radar now. The fund just hit a 52-week high, and is up 19.2% from its 52-week low price of $11.25 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: 

IAU in Focus

This ETF is designed to track the spot price of gold bullion. It charges investors 25 basis points a year in fees (see: all Precious Metals ETFs here). 

Why the Move?

As the Fed hints at policy easing in 2019, the greenback remains subdued. This is a great scope for the outperformance of the gold bullion ETF IAU. Also, flare-up in geopolitical risks always benefits the safe-haven asset gold. Latest U.S.-Iran tensions thus boosted the yellow metal to a six-year high.

More Gains Ahead?

The fund has a positive weighted alpha of 14.30, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.

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iShares Gold Trust (IAU): ETF Research Reports
 
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