Latest news with #GLDETF
Globe and Mail
16-04-2025
- Business
- Globe and Mail
Hedge Fund Greenlight Capital Posts 8.2% Q1 Return as It Bets Big on Gold (GLD)
Greenlight Capital has posted an 8.2% gain for this year's first quarter thanks to a big bet the hedge fund made on gold. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. In a letter to investors, Greenlight founder David Einhorn said that the firm managed to beat the return of the benchmark S&P 500 index that declined 4.3% during Q1 because of its early pivot from stocks into gold, which was the hedge funds top performing security between January and March of this year. 'In late February we pivoted from conservative, but not bearish, to bearish,' wrote Einhorn in the letter. 'We suspect we are now in a bear market that is just starting.' The hedge fund manager added that the bet on gold should pay off further in coming months as U.S. President Donald Trump's tariffs and trade policies continue roiling financial markets. Record High News of Einhorn's move into gold comes on a day when bullion's price is up nearly 4% and trading at an all-time high of $3,352.70 per ounce. Gold's price has been hitting one record high after another this year as investors rush into the relative safety of the precious metal. Einhorn noted in his letter to investors that privately held Greenlight Capital owns both gold bars and call options on the spot price of gold, adding that the price of the yellow metal rose 19% during this year's first quarter. Einhorn's Q1 performance was much better than most U.S.-based hedge funds, which lost 0.38% during the quarter, according to data from research group HFR. Is the GLD ETF a Buy? (GLD), so we'll look at the ETFs three-month performance instead. As one can see in the chart below, the GLD ETF has risen 18.84% in the last 12 weeks.
Globe and Mail
01-04-2025
- Business
- Globe and Mail
Gold (GLD) Closes Out Its Best Quarter Since 1986 amid Flight to Safety
Gold hasn't shone this bright in nearly 40 years. Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. The precious metal that is widely used to make jewelry just posted its best quarterly performance since 1986 amid a flight to safety among skittish investors worried about trade wars, geopolitical instability, and a potential U.S. recession. The spot price of gold rose 19.3% in this year's first quarter to finish trading on March 31 at an all-time high of $3,157.60 per ounce. The last time gold performed this well was the third quarter of 1986, when it gained 24% immediately after the Chernobyl nuclear disaster when the world was on edge and investors were seeking safe haven assets. Gold has hit 18 closing highs so far in 2025 and we're only three months into the year. More Gains Ahead? In addition to investors buying physical gold and spot gold exchange-traded funds (ETFs), the yellow metal also continues to benefit from robust buying among central banks around the world. In China and elsewhere, central banks are buying physical gold amid global uncertainty and to lessen their exposure to the U.S. dollar, which is the world's reserve currency. Expectations for two to three interest rate cuts from the U.S. Federal Reserve this year is also underpinning the price of gold as lower rates reduce the opportunity cost of holding gold. The rally in gold's price is having a cascading effect, lifting the price of gold miner stocks such as Barrick Gold (GOLD), and even retailers such as Costco Wholesale (COST) that sell gold bars to consumers. Is the GLD ETF a Buy? (GLD), so we'll look at the ETFs three-month performance instead. As one can see in the chart below, the GLD ETF has risen 15.74% in the last 12 weeks.
Globe and Mail
27-03-2025
- Business
- Globe and Mail
Goldman Sachs (GS) Lifts Its Price Target on Gold as Investors Flee U.S. Stocks
Wall Street investment bank Goldman Sachs (GS) expects gold bullion to continue shining as investors flee the volatile U.S. stock market. Light Up your Portfolio with Spark: Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. Goldman Sachs analyst Lina Thomas has raised her price target on gold this year to $3,300 an ounce, up 6% from $3,100 previously. Thomas said that the price of bullion should continue to get a lift as investors seek safety from the current volatility in equity markets, and as central banks ratchet up their buying of the precious metal amid increased geopolitical turmoil. Gold is currently trading at $3,054.24 and near an all-time high. Earlier in March, gold's price rose above $3,000 an ounce for the very first time, boosted by economic uncertainty over trade tariffs and signs of an economic slowdown in the U.S. Gold's price is up about 35% over the last 12 months. Gold ETF Action In her outlook, Thomas notes that there has been a sizable increase in money flowing into gold exchange-traded funds (ETFs) in recent weeks as nervous investors trade out of stocks and the benchmark S&P 500 index slumps. Additionally, the Goldman Sachs analysts says that gold is being buoyed by expectations for two interest rate cuts in the U.S. this year. 'While ETF flows generally track Fed policy rates, history shows they can overshoot during extended periods of macro uncertainty — such as during the Covid-19 pandemic,' she wrote. Lower interest rates reduce the opportunity cost of owning gold. Goldman Sachs isn't the only Wall Street firm that is bullish on gold. Bank of America (BAC) also just raised its gold price target to $3,500 from $3,000, also citing central bank buying and ETF demand. Is the GLD ETF a Buy? Most Wall Street analysts don't offer ratings or price targets on the SPDR Gold Trust (GLD), so we'll look at the ETFs three-month performance instead. As one can see in the chart below, the GLD ETF has risen 15.73% in the last 12 weeks.
