Gold Rally Sparks Potential Upside for WisdomTree's Efficient Gold Plus Equity Strategy Fund
Gold prices have surged in recent months, with the commodity on pace for its best monthly gain in 27 years. As of August 21, gold was up 14% for the month, and analysts predict it will continue to rise.
Morgan Stanley analyst Amy Gower noted that bullion has already reached her bank's $4,450 per troy ounce forecast 'faster than expected.' She also pointed out that investors are returning to the gold ETF market amid expectations of a hold on interest rate hikes by the Federal Reserve this year.
The WisdomTree Efficient Gold Plus Equity Strategy Fund (GDE) has tracked this trend closely, rising nearly 15% for the month ending August 21. Its actively managed strategy and combination of gold futures and large-cap equity exposure make it an attractive option for investors looking to benefit from a continued bullion rally.
GDE's potential upside is further supported by comments from Bridgewater Associates founder Ray Dalio, who reiterated his affinity for gold in a recent LinkedIn post. He noted the possibility of a major debt crisis arriving in three years and potentially producing an environment where 'non-government-produced monies like gold and Bitcoin' perform well.