The SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and other gold exchange traded funds rallied last week, extending already solid year-to-date gains. Some technical analysts believe the yellow metal could offer even more near-term upside.

GLD is the largest physically backed gold ETF on the market, providing investors exposure to gold price movement in an easy-to-use investment vehicle. The ETF is backed by physical gold bars stored in London vaults. The gold trust currently holds about 27.2 million ounces of gold, so each SDPR Gold Shares represents fractional ownership of the underlying gold.

Ongoing lethargy in the U.S. dollar is also helping gold prices and ETFs this year.

“One factor that has helped to keep Gold elevated is a weaker U.S. Dollar,” according to ETF Daily News. The Gold/U.S. Dollar ratio “has consolidated near its 2018 highs and is attempting to break out. It’s been a long tiring battle with plenty of set-backs for metals bulls over the last 5 years… but they aren’t giving up easily. A breakout here could produce another gold rush.

Favorable Setups

Gold’s recent bullishness is impressive when considering that the Federal Reserve raised interest rates last month, setting the stage for two more rate hikes later this year. However, the yellow metal has been boosted by the dollar’s disappointing showing this year.

Gold has been a go-to investment for investors seeking gold exposure as a way to protect their spending power in an inflationary environment and as a safety play to hedge potential market risks.

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