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If Gold Is Great Again, This ETF Could Soar

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  • GDE
As of late August 21, gold was on pace for a monthly gain of 14%. So even if the yellow metal trades flat over the remainder of August and concludes the month with a 14% gain, that will represent the commodity’s best monthly showing in 27 years.Helped by its combination of gold futures/large-cap equity exposure, the WisdomTree Efficient Gold Plus Equity Strategy Fund (GDE ) is higher by nearly 15% for the month ending August 21, clearly indicating that it’s poised to benefit if bullion continues its rebound. There are reasons to believe the commodity will continue its ascent, potentially providing pathways to GDE upside. For example, Morgan Stanley analyst Amy Gower noted in a recent report that bullion reached the bank’s $4,450 per troy ounce forecast “faster than expected,” adding that “we see a path to [greater than] $5,000/oz in 2027 but with scope for volatility too." Gower also pointed out that investors are returning to the gold ETF market amid expectations that the Federal Reserve will not raise interest rates this year. Morgan Stanley expects the central bank to be on hold when it comes to rate alterations over the remainder of 2026.More Reasons GDE Can ShineGDE is an actively managed ETF, an alluring trait against the backdrop of expected gold volatility. Plus, gold’s aforementioned rally accrued as Treasury yields surged, indicating that more market participants are revisiting gold as protection against soaring U.S. debt, rather than viewing it as an asset vulnerable to rising rates. The commodity “appears to be pricing the fiscal concerns behind higher yields more than the yield level itself,” noted Morgan Stanley. Billinoaire investor and Bridgewater Associates founder Ray Dalio also reiterated his affinity for gold. He noted in recent LinkedIn post the possibility that a major debt crisis will arrive in three years, potentially producing an environment in which “non-government-produced monies like gold and Bitcoin” perform admirably. Gold and GDE rallied last week, as the Treasury Department announced significant additions to its buyback program pertaining to long-term bonds. Should the department extend those efforts, gold and GDE could continue their bullish ways. For more news, information, and analysis, visit the Modern Alpha Content Hub.DisclosuresThis article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional. WisdomTree is an independent company, unaffiliated with VettaFi | ETF Trends. WisdomTree has not been involved with the preparation of the content supplied by VettaFi | ETF Trends. It does not guarantee, or assume any responsibility for its content.

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