Todd Shriber, chief ETF analyst at Benzinga, tells The Ticker that a softer dollar could become the catalyst for gold to keep shining.
“The Fed rate cuts that took place this year, sometimes some of the dollar weakening effect can take a few months, like maybe up to six, seven months in some cases. If we see that trickle into next year, I think we'll probably see even more near-term upside in gold, in GLD,” Shriber said.
The SPDR Gold Shares ETF (GLD) has increased roughly 17% year to date. It’s the largest exchange-traded fund on Wall Street to invest in physical gold.
Shriber explains he wouldn't bank on that as a repeat performance for 2020, but does expect more interest in gold leading up to the presidential election.
“We might see a shift from stocks in that May, June period into safer assets in the summertime. And I would think gold could establish a leadership position in the months leading up to November 2020,” he added.
While Shriber calls GLD “the choice of the pros,” he also points to SPDR Gold MiniShares Trust (GLDM) and GraniteShares Gold Trust ETF (BAR) as some of the best ways to play the metal, due to its lower fees.
Spot gold is currently on track for its best annual gain since 2010.
McKenzie Stratigopoulos is a producer at Yahoo Finance. Follow her on Twitter: @mckenziestrat