3 Gold ETFs That Could Surge If the Fed Cuts Rates This Month

Core Viewpoint - The market is experiencing a rotation from technology stocks to defensive sectors, and there is potential for a shift from debt securities to precious metals, particularly gold, due to anticipated interest rate cuts by the Federal Reserve [1][2][3]. Market Reactions - Following Federal Reserve Chair Jerome Powell's speech, the S&P 500 rose by 1.52%, nearing its all-time high, while gold prices are expected to rise as investors move away from fixed income assets [2][3]. Gold Market Dynamics - Gold has been trading between $3,500 and $3,180 since reaching a record high in April, with expectations of a bullish trend as the Federal Reserve revises its monetary policy [4][5]. - The U.S. dollar has weakened by 10.69% from its year-to-date high of $109.98 to $98.22, which historically correlates with rising gold prices [5][6]. Geopolitical Factors - Ongoing geopolitical tensions, including stalled peace talks between the U.S. and Russia regarding Ukraine and military actions in Gaza, are expected to increase demand for safe-haven assets like gold [6]. Price Forecasts - UBS Group has raised its gold price target to $3,600, citing macroeconomic risks and strong investment demand for gold ETFs and central banks [7]. Gold-Backed ETFs Overview - SPDR Gold Trust (GLD): The largest gold ETF with $102.72 billion in assets under management (AUM), has gained nearly 597% since inception [9][10]. - iShares Gold Trust (IAU): Smaller than GLD with $48.41 billion in AUM, has outperformed GLD with a gain of over 648% since inception [13][14]. - SPDR Gold MiniShares Trust (GLDM): Newer ETF with $16.3 billion in AUM, has gained nearly 168% since launch, offering the lowest expense ratio at 0.01% [15][16].