Best Gold ETFs to Buy for May 2024

What is the gold price outlook for 2024?

Gold represents a safe investment for hundreds of years and although the yellow metal shows some volatility, the trend remains strongly bullish in the very long term. The graph since 1975, almost 50 years, shows an increase of almost 1000% and although it tends to be negatively impacted by a strong dollar, it is also favored by the weakness of the greenback.

The rise in the gold price since mid-2022 has been driven by new factors such as a significant acceleration in accumulation by emerging market central banks, as well as retail buying in Asia.

The precious metal has surged since mid-February 2024, surpassing the key psychological barrier of $2,000 per ounce. Analysts believe that gold, which shows no signs of slowing down, will continue its evolution in 2024 mainly because of three factors: the likely decision of the US Fed lower interest rates, a weaker dollar and geopolitical tensions in Europe and the Middle East.

Gold’s impressive rally has forced financial institutions to reassess their outlook, and their new forecasts suggest even brighter days ahead for the yellow metal.

JP Morgan Chase & Co., which predicted prices would surpass $2,000 an ounce by the end of 2023, believes prices could reach new records, with an average price of $2,175 an ounce for bullion in the last quarter of 2024. Commodity analysts at Goldman Sachs expect the gold price for 2024 to be around $2,050 per ounce. ING expects prices to average $2,031 per ounce in 2024, averaging $2,100 per ounce in the fourth quarter of 2024.

Overview of 5 Gold ETFs to Watch for May 2024

Gold is a popular asset among investors who want to hedge against risks such as inflation, market turmoil and political unrest.

Some investors view ETFs as a relatively liquid and inexpensive option for investing in gold compared to alternatives such as gold futures or shares of gold mining companies.

THE Gold ETF are exchange-traded funds that provide investors with exposure to gold without having to directly purchase, store and resell the precious metal. There are gold ETFs that directly track the price of gold and others that invest in companies in the gold mining industry. These funds have performed quite well recently, with the price of their benchmark precious metal rising nearly 13% over the past 12 months.

In the shorter term, the price of gold benefits from the relative weakness of the US dollar, but a bullish return of the greenback will probably be observed in the event of a deterioration in the economy and fear in the markets.

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Here are the 5 best gold ETFs in the world to watch: