ETFs to Consider as Gold Jumps to 2-Week High

Core Insights - The weakening dollar, ongoing geopolitical and economic uncertainty, and rising expectations for further Fed rate cuts are driving investor interest in gold, with prices increasing by 3.58% over the past five days and 55.39% year to date [1][2] Economic Indicators - Strong fundamental indicators suggest that gold's gains could extend into 2026, supporting increased portfolio allocation [2] - The U.S. Dollar Index (DXY) has decreased by 0.52% over the past five days and 8.17% year to date, with an all-time decline of 16.88% [3] Market Sentiment - A weaker U.S. dollar typically leads to higher demand for gold, making it more affordable for buyers using other currencies [4] - The likelihood of another interest rate cut in December is estimated at 64.6% according to the CME FedWatch tool [4] Geopolitical Factors - The U.S. government shutdown, which began on October 1, has contributed to economic uncertainty, with consumer sentiment dropping to its lowest level in nearly three and a half years [5][6] Investment Strategies - Gold remains a key hedge for investors amid increasing macroeconomic and geopolitical uncertainties [6] - A long-term passive investment strategy is recommended for investors, with a "buy-the-dip" approach suggested for potential declines in gold prices [9] ETF Recommendations - For physical gold exposure, investors can consider SPDR Gold Shares (GLD), iShares Gold Trust (IAU), SPDR Gold MiniShares Trust (GLDM), abrdn Physical Gold Shares ETF (SGOL), and iShares Gold Trust Micro (IAUM) [8] - GLD has an asset base of $133.51 billion, making it the largest option, while GLDM and IAUM are the cheapest in terms of annual fees at 0.10% and 0.09% respectively [10] - For gold miners, options include VanEck Gold Miners ETF (GDX), Sprott Gold Miners ETF (SGDM), VanEck Junior Gold Miners ETF (GDXJ), and Sprott Junior Gold Miners ETF (SGDJ) [11] - GDX has an asset base of $21.25 billion and a one-month average trading volume of 32.09 million shares, making it the most liquid option among gold miners ETFs [12]