Expect More Upside for Gold in the Next Few Weeks

Whether its further downside from a strengthening dollar or more upside due to market uncertainty in a forthcoming election, many experts have their take on where gold prices will head in the next few weeks. As for Commerzbank, they’re erring on the side of bullishness per a recent Kitco News article.

“The gold price is still heavily dependent on the U.S. dollar’s performance. A slightly depreciating dollar lent some tailwind to the gold price yesterday, whereas a firmer U.S. currency is already weighing on gold again this morning,” Commerzbank analyst Daniel Briesemann writes. “We believe that gold is well-supported and expect the next few weeks to bring a renewed and lasting upswing rather than any noticeable correction.”

As far as prices go, the bank can see gold getting back to $2,000 an ounce.

“Speculation has emerged that Joe Biden and the Democrats might set in motion a stimulus package worth $5 trillion if Biden were to become the next U.S. president and the Democrats were to win a majority in the Senate (they already have a majority in the House of Representatives),” the bank said. “This would lead to another steep rise in national debt, which the U.S. Federal Reserve would presumably have to cushion with bond purchases.”

ETF investors can look for gold exposure with funds like the VanEck Merk Gold Trust (OUNZ). OUNZ seeks to provide investors with an opportunity to invest in gold through the shares and be able to take delivery of physical gold in exchange for those shares.

OUNZ Chart

OUNZ offers investors:

  • Deliverability: VanEck Merk Gold Trust holds gold bullion in the form of allocated London Bars. It differentiates itself by providing investors with the option to take physical delivery of gold bullion in exchange for their shares.
  • Convertibility: For the purpose of facilitating delivery, Merk has developed a proprietary process for the conversion of London Bars into gold coins and bars in denominations investors may desire.
  • Tax Efficiency: Taking delivery of gold is not a taxable event as investors merely take possession of what they already own: the gold.

As mentioned, one of the key benefits of OUNZ is the ability to exchange shares of the ETF for physical gold. Per the fund’s website, if you’re an “investor interested in taking delivery of physical gold in exchange for your OUNZ shares (Delivery Applicants), you must submit a signed Delivery Application to Merk Investments LLC (the “Sponsor”).

For more market trends, visit ETF Trends.