Gold ETFs Soar to New Highs on Tariff Turmoil: What's Ahead?
Gold rallied to all-time highs amid the rush to a safe haven, triggered by President Donald Trump’s tariff threats, which have ignited fears of a trade war. The bullion topped $2,830 per ounce on Monday before paring back some gains. With the surge in bullion prices, ETFs linked to the spot gold price or futures also touched highs. While there is a long list, we have highlighted the ones that are popular. These are SPDR Gold Trust ETF GLD, iShares Gold Trust IAU, SPDR Gold MiniShares Trust GLDM, abrdn Physical Gold Shares ETF SGOL and iShares Gold Trust Micro IAUM. All these ETFs have risen 6.8% each since the start of 2025 and have a Zacks ETF Rank #3 (Hold) each.Trump has levied 25% tariffs on Canada and Mexico and 10% on China, citing that the measures were necessary to combat illegal immigration and drug trade. The move will drive U.S. inflation faster than expected and hurt consumers, driving up the prices of goods and curtailing spending. It will also affect the global economy and corporate profits, particularly that of big U.S. exporters. All these will continue to weigh on the stock market and could disrupt global supply chains. However, Trump paused Mexico and Canada tariffs on Monday while tariffs on China are still in place.As the world braces for a trade war following Trump’s tariffs, the appeal of the yellow metal has increased. Gold is often used to preserve wealth during financial and political uncertainty and usually does well when other asset classes struggle. Additionally, the inflationary pressure caused by new tariffs would benefit the precious metal's status as a hedge against rising prices (read: Trump's Tariffs Shake Markets: ETFs to Watch).ETFs in FocusSPDR Gold Trust ETF (GLD)SPDR Gold Trust ETF tracks the price of gold bullion measured in U.S. dollars and kept in London under the custody of HSBC Bank USA. It is an ultra-popular gold ETF with an AUM of $76.5 billion and a heavy volume of about 6 million shares a day. SPDR Gold Trust ETF charges 40 bps in fees per year from investors. iShares Gold Trust (IAU)iShares Gold Trust offers exposure to the day-to-day movement of the price of gold bullion. It is backed by physical gold under the custody of JP Morgan Chase Bank in London. iShares Gold Trust charges 25 bps in annual fees. It trades in average daily volume of 4 million shares and has an AUM of $34.7 billion.SPDR Gold MiniShares Trust (GLDM)SPDR Gold MiniShares Trust seeks to reflect the performance of the price of gold bullion. It is a slightly modified alternative to the State Street behemoth gold fund GLD and is kept under the custody of ICBC Standard Bank Plc and JPMorgan Chase Bank. SPDR Gold MiniShares Trust is a low-cost choice in the U.S. listed physically gold-backed ETF space, charging investors 10 bps in annual fees. It has $9.9 billion in AUM and trades in a solid average daily volume of 2.3 million shares.abrdn Physical Gold Shares ETF(SGOL)abrdn Physical Gold Shares ETF tracks the price of gold bullion. The Trust holds allocated physical gold bullion bars stored in secure vaults in London. abrdn Physical Gold Shares ETF has amassed $3.9 billion in its asset base and trades in a solid volume of 4 million shares per day. It charges 17 bps in annual fees per year.iShares Gold Trust Micro (IAUM)iShares Gold Trust Micro offers exposure to the day-to-day movement of the price of gold bullion. It is the lowest-cost gold ETF on the market, having an expense ratio of 0.09%. iShares Gold Trust Micro has amassed $1.5 billion in its asset base while trading in an average daily volume of 2 million shares.What Lies Ahead?Most analysts expect tariff escalation to be bullish for gold. Citigroup expects the price to go up to $3,000 per ounce (read: After Blockbuster 2024, Gold ETFs to Sparkle Further in 2025).Central banks are one of the major drivers of gold prices. The banks are dominant buyers of gold as they seek to diversify their reserves away from the U.S. dollar. Meanwhile, strong demand from individual investors in emerging markets, such as India and China, is also acting as a tailwind for the precious metal. Lower interest rates will continue to support gold prices. Major central banks around the world are expected to continue their dovish monetary policies in 2025. Lower rates raise the yellow metal’s attractiveness compared with fixed-income assets such as bonds. Notably, gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity costs of holding non-yielding bullion. However, a strong dollar could weigh on gold price as it makes the yellow metal more expensive for buyers using other currencies.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>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 SPDR Gold Shares (GLD): ETF Research Reports iShares Gold Trust (IAU): ETF Research Reports abrdn Physical Gold Shares ETF (SGOL): ETF Research Reports SPDR Gold MiniShares Trust (GLDM): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Quelle: Zacks
