Gold To Cross The $2000 Mark? ETFs To Gain

Co-chief investment officer Greg Jensen of the world’s biggest hedge fund, Bridgewater Associates, estimates that gold will touch the milestone of $2,000 an ounce (per a Financial Times article). The metal is expected to gain nearly 30% from its current $1550-an-ounce price level. It is worth noting that gold delivered an 18.9% return for 2019. Analysts believe that uncertainties surrounding the Sino-US trade war, global growth worries and geopolitical risks have been adding to the lure of the yellow metal.

Jensen believes rising political uncertainties and major central banks, especially the Fed, allowing higher inflation levels could lead to the upside in gold. In this regard, he said, “there is so much boiling conflict. People should be prepared for a much wider range of potentially more volatile set of circumstances than we are mostly accustomed to.”

Gold, which is considered a great store of value and hedge against market turmoil, can continue to gain as investors will resort to safe-haven picks on rising unequal distribution of income in the United States and intensifying tensions with China and Iran.

Moreover, it is being believed that the phase-one trade deal will help improve trade conditions around the globe but the relief will be temporary. China will have to grapple with 25% tariffs on $250 billion worth of Chinese industrial goods and components that are used by manufacturers in the United States. The tariff-related issues are expected to be dealt with in the phase two of the trade deal (read:Phase-One Trade Deal to Boost These ETF Areas).

Gold ETFs to Shine

Gold ETFs mostly move in tandem with gold prices. The SPDR Gold Trust ETF GLDiShares Gold Trust IAUPhysical Swiss Gold Shares ETF SGOLSPDR Gold MiniShares Trust GLDM and GraniteShares Gold Trust BAR are some of the popular ETFs. These funds have a Zacks ETF Rank #3 (Hold). Below we have discussed them in detail:

GLD

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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