Gold Surges to Seven-Week High on Geopolitical Tensions

Gold prices have reached a seven-week high near $4,300 per ounce due to geopolitical tensions, a weakening US dollar, and shifting Federal Reserve rate expectations. Despite this surge, gold remains around 20% below its record high of $5,589 per ounce set in late January.

The SPDR Gold Shares (GLD) is one of the most popular ETFs for gaining direct exposure to spot gold prices. With an expense ratio of 40 basis points, it allows active traders to track gold prices without equity risk. Each share represents roughly one-tenth of an ounce of gold stored in London vaults by custodian banks HSBC and JPMorgan.

However, GLD's high expense ratio may be a drawback for long-term investors seeking lower holding costs. The SPDR Gold Minishares Trust (GLDM) offers a cheaper alternative with a 10 basis point expense ratio, providing exposure to the same physical gold without the high trading volume and deep options market.