Yahoo Finance Gold ETF (OUNZ) Hits New 52-Week High
For investors seeking momentum, VanEck Merk Gold Trust OUNZ is probably on the radar. The fund just hit a 52-week high and moved up 18% from its 52-week low of $17.56 per share.
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 of where it might be headed:
OUNZ in Focus
VanEck Merk Gold Trust seeks to provide investors with a convenient and cost-efficient way to buy and hold gold through an exchange-traded product with the option to take physical delivery of gold if and when desired. It holds gold bullion in the form of allocated London Bars. VanEck Merk Gold Trust is the only gold ETF with a patented delivery process, providing investors with the option to request delivery on any business day. The fund charges 25 bps in fees per year. (see: all the Precious Metals ETFs here).
Why the Move?
Gold has been an area to watch lately, given the surge in the metal’s price. Gold soared to an all-time high of above $2,100 an ounce, driven by expectations of upcoming U.S. interest rate reductions. Traditionally viewed as a safe haven during periods of economic uncertainty and low interest rates, gold's appeal has increased following a series of weak U.S. economic reports.
More Gains Ahead?
Currently, OUNZ has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, a weighted alpha of 14.80 and 20-day volatility of 10.80% show that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
VanEck Merk Gold Trust (OUNZ): ETF Research Reports
