Gold could see higher highs.
All thanks to signs inflation may be cooling, which could lead the Fed to pause.
The Labor Department said CPI was up just 0.1% last month, which was weaker than the 0.2% anticipated. Over the last year, CPI is up 5%, which was below expectations for 5.1%.
“This was the smallest 12-month increase since the period ending May 2021,” the Labor Department said, as noted by Kitco.com. That being said, Nicky Shiels, head of metals strategy at MKS PAMP, said that there is not much holding gold back after this inflation data. She added the Fed is unlikely to extend its rate hiking cycle after May.
That being said, investors can always look to popular gold stocks, such as Barrick Gold (GOLD), Newmont (NEM), Royal Gold (RGLD), etc., or even hot gold ETFs, such as:
VanEck Vectors Gold Miners ETF (GDX)
One of the best ways to diversify at less cost is with an ETF, such as the VanEck Vectors Gold Miners ETF (GDX). Not only can you gain access to some of the biggest gold stocks in the world, you can do so at less cost. With an expense ratio of 0.51%, the ETF holds positions in Newmont Corp., Barrick Gold, Franco-Nevada, Agnico Eagle Mines, Gold Fields, and Wheaton Precious Metals to name a few.
Sprott Junior Gold Miners ETF (SGDJ)
With an expense ratio of 0.35%, the SGDJ ETF seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the Solactive Junior Gold Miners Custom Factors Index. The Index aims to track the performance of small-cap gold companies whose stocks are listed on regulated exchanges.
Or, we can even look at a gold ETF such as the SPDR Gold Shares (GLD), which is the largest physically backed gold exchange traded fund (ETF) in the world.