One-Month Price Peak for Gold Should Bolster This ETF

It’s been a comeback story for gold so far this year as the precious metal recently hit a one-month peak, which should help bolster gold-related ETFs like the Global X Gold Explorers ETF (GOEX), and so far, it has.

Rising inflation is bringing investors back to gold as the capital markets de-risk in order to see just how rising prices will affect the economy in the future. In the meantime, gold is offering itself as the classic inflation hedge.

The precious metal was down 4% in 2021, but it is now up about 8% in 2022. Russia’s invasion of Ukraine continues to keep the markets in check as geopolitical tensions are driving more investors to gold.

“Gold prices hit a one-month high on Wednesday as rising consumer prices boosted its appeal as an inflation hedge, with investors seeming to look past an impending interest rate hike by the Federal Reserve,” CNBC reports.

Gold Price in US Dollars Chart

Mining for Gains With GOEX

Rather than play gold prices directly, GOEX offers investors a way to get indirect exposure via gold exploration activities. While gold is up 8% for the year, consider that GOEX is up 20% for the same period.

GOEX seeks to provide investment results that generally correspond to the price and yield performance of the Solactive Global Gold Explorers & Developers Total Return Index. The index is a free float-adjusted, liquidity-tested, and market capitalization-weighted index designed to measure broad-based equity market performance of global companies involved in gold exploration.

GOEX gives investors:

  • Targeted exposure: GOEX is a targeted play on gold exploration.
  • Appeal of gold: Historically, investors have turned to gold as a potential store of value — particularly during periods of volatility.
  • ETF efficiency: In a single trade, GOEX delivers efficient access to a basket of companies involved in the exploration of gold.

GOEX Chart

For more news, information, and strategy, visit the Thematic Investing Channel.