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SPDR Gold Shares (GLD) rose 0.94% to $399.63, marking a seventh consecutive session of gains. The rise is supported by a weaker U.S. dollar and U.S. economic data, influencing Federal Reserve policy expectations. Despite fluctuations due to Ukraine peace talks and profit-taking, analysts remain positive on gold, citing central bank buying and geopolitical uncertainty. GLD is rated Buy by Seeking Alpha, with strong momentum and liquidity. China's central bank is a key driver of gold's rally, with GLD gaining 6.67% in the past month and 65% year-to-date.
SPDR Gold Shares (NYSE:GLD) outperformed the market by 4.6% annually over the past 5 years, with an average annual return of 17.65%. A $1000 investment in GLD 5 years ago would now be worth $2,246.88. The article highlights the significant impact of compounded returns on investment growth.
Investors are increasingly turning to gold ETFs as gold nears record highs, driven by tech stock valuation concerns and potential US interest rate cuts. SPDR Gold Shares and iShares Gold Trust are popular choices for hedging against market volatility. Political and macroeconomic factors, including US monetary expectations and a weaker dollar, further boost gold demand. Gold ETFs offer efficient exposure to gold, proving essential in volatile markets.
The S&P 500 is nearing an upside breakout, with positive seasonality potentially leading to all-time highs by year-end. Despite high volatility, new buy signals have emerged, and no new sell signals are present. Recommendations include adding bullish positions if SPX breaks above 6,900 and investing in SPDR Gold Shares ETF due to a new buy signal. The market outlook remains bullish, supported by favorable seasonal patterns and volatility derivatives.
Gold prices could increase by a third next year, potentially reaching over $5,000, driven by investor demand for gold ETFs. The World Gold Council highlights that falling yields, geopolitical stress, and a flight-to-safety will support this surge. Gold ETFs like SPDR Gold Shares and iShares Gold Trust have already seen significant gains this year.
