On Thursday, January 29, gold prices approached the significant level of $5,600 per ounce, marking a gain of over 10% within four trading sessions. This upward movement has positively impacted five major gold ETFs, which have entered the top 10th percentile in momentum scores based on a composite metric assessing relative price strength and volatility.
These five ETFs demonstrate consistent positive trends across three key timeframes: short-term (recent months), medium-term (several quarters), and long-term (past year), indicating sustained upward momentum.
The Goldman Sachs Physical Gold ETF is among the leading funds benefiting from this trend. Market dynamics contributing to this rally include the Federal Reserve’s decision to maintain interest rates at 3.50%–3.75%, which has been interpreted as continued monetary support, thereby reducing the opportunity cost of holding non-yielding assets like gold.
Additionally, geopolitical tensions, particularly between the U.S. and Iran, have increased demand for gold as a safe-haven asset. Investors are shifting away from paper currencies amid these uncertainties, further supporting gold prices.
As of the latest update, spot gold is trading at $5,506.47, following an all-time high of $5,595.44. Technical analysis identifies resistance levels between $5,525 and $5,600, with support found in the $5,220 to $5,340 range.
The performance of these ETFs reflects the broader market trends influencing gold prices.
