The price of Gold has been on a tear since mid-March, and the largest tracking ETP, GLD (NYSE:GLD) (Expense Ratio 0.40%) today is trading at its highest level since last November — before Trump’s election.
The fund, which is the 12th largest fund in the entire U.S. listed ETF landscape in terms of asset size (over $35 billion presently), has seen healthy inflows year-to-date, to the tune of about $875 million in.
Whether one is a fan or not of the President, no one can deny that the U.S. Dollar has responded negatively to his comments recently when Trump stated, according to a CNN.com article titled “U.S. Dollar Drops Sharply After Trump Calls It “Too Strong,” the following:
“I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me.”
Since these comments, the U.S. Dollar has been a net loser five out of six trading days, including a gap down today that brings it back to mid-March lows, and this effect certainly has helped Gold prices lately, which tend to benefit when the U.S. Dollar slumps.
Several other “Long Gold” ETPs are worth following here as well, especially if Gold continues to break out, and they include the $8.3 billion iShares Gold (NYSE:IAU) (Expense Ratio 0.25%), the $1 billion ETFS Physical Swiss Gold Shares (NYSE:SGOL) (Expense Ratio 0.39%), as well as several Leveraged “Bull” funds like:
- DB Gold Double Long Exp 15 Feb 2038 (NYSE:DGP) (Expense Ratio 0.75%),
- VelocityShares 3x Long Gold linked to SP GSCI Gold ER Exp 14 Oct 2031 (NASDAQ:UGLD) (Expense Ratio 1.35%), and
- ProShares Ultra Gold (NYSE:UGL) (Expense Ratio 0.95%).
The funds above which tend to catch interest in such market conditions, when gold is moving substantially higher.
On the other hand, profit takers or Gold Bears at these level may look to the following:
- ProShares UltraShort Gold (NYSE:GLL) (Expense Ratio 0.95%),
- DB Gold Double Short Exp 15 Feb 2038 (NYSE:DZZ) (Expense Ratio 0.75%),
- DB Gold Short Exp 15 Feb 2038 (NYSE:DGZ) (Expense Ratio 0.75%), and
- VelocityShares 3x Inverse Gold linked to S&P GSCI Gold ER Exp 14 Oct 2031 (NASDAQ:DGLD) (Expense Ratio 1.35%)
These leveraged bear plays are good choices if you’re looking to fade the current move higher in gold prices.
The SPDR Gold Trust (P:GLD) ETF (NYSE:GLD) was trading at $122.88 per share on Tuesday afternoon, up $0.64 (+0.52%). Year-to-date, GLD has gained 12.11%, versus a 4.59% rise in the benchmark S&P 500 index during the same period.
GLD currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 33 ETFs in the Precious Metals ETFs category.