Gold regained its luster this week, rising to a two-week high, driven by the resumption of bullion purchases by China, hopes of another Fed rate cut next week and rising geopolitical tensions following the Syrian unrest. Investors seeking to participate in the rally could tap into the ETFs that are directly linked to the spot gold price or futures to gain exposure to the metal (read: Gold ETFs Regain Luster: Will the Rally Continue?).

These are SPDR Gold Trust ETF GLD, iShares Gold Trust IAU, SPDR Gold MiniShares Trust GLDM, Aberdeen Standard Physical Swiss Gold Shares ETF SGOL and iShares Gold Trust Micro IAUM. All these ETFs have a Zacks ETF Rank #3 (Hold).

China's central bank has resumed gold buying after a six-month halt. The People’s Bank of China, which had been a major buyer of bullion since late 2022, bought 160,000 fine troy ounces in November. Central banks across the globe purchased 60 tons of gold in October, the highest monthly amount in 2024. India led the buying, adding 27 tons in October and 77 tons year to date, marking a five-fold increase from 2023. Turkey and Poland also reported significant additions to their reserves.

With two rate cuts so far this year, traders predict an 86% chance of a further 25-bps cut at the Dec. 17-18 meeting, up significantly from 73% last week, according to the CME FedWatch tool.

On the geopolitical front, the government’s collapse in Syria has raised demand for traditional safe-haven asset gold. Gold is often used to preserve wealth during financial and political uncertainty, and usually does well when other asset classes struggle.

ETFs to Tap

SPDR 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 $74 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 (read: Winning ETFs in Focus on Bitcoin, AI & Gold's Dream Run Last Week). 

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 volumes of 5 million shares and has an AUM of $33.3 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. 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 $9.4 billion in AUM and trades in a solid average daily volume of 3 million shares.

Aberdeen Standard Physical Swiss Gold Shares ETF (SGOL)

Aberdeen Standard Physical Swiss Gold Shares ETF tracks the price of gold bullion. The Trust holds allocated physical gold bullion bars stored in secure vaults in Zurich, Switzerland and London, UK. Aberdeen Standard Physical Swiss Gold Shares ETF has amassed $3.8 billion in its asset base and trades in a solid volume of 3.5 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 $1.4 billion in its asset base while trading in an average daily volume of 3 million shares.