On May 15, Goldman Sachs Research forecasted new record highs for gold. Since that day, gold has achieved several new record closes. Gold futures crossed the $4,000 threshold for the first time on Oct. 7 in New York, and the precious metal has seen a year-to-date increase of 50%. Signs are pointing to a continuation of that upward momentum in the price of gold.
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What Is Driving Gold Higher?
The strong upward trend in gold is being driven by a combination of factors. Here are four key reasons behind gold’s impressive price performance:
Heightened Geopolitical Uncertainty
Geopolitical tensions are unusually high right now. The war in Ukraine and the hostilities in the Middle East, as well as world trade volatility from President Donald Trump’s aggressive tariff regime, are combining to boost the appeal of gold as a safe-haven asset. A partial U.S. government shutdown that began Oct. 1 has also added to investors’ anxiety.
Central Bank Buying
Owning gold has become an important strategy tool for some of the world’s central banks. This is especially true in emerging markets like China, India and Turkey, as well as in Eastern European countries like Poland. The trend was spurred by the increased use of economic sanctions by financially powerful countries as a kind of weapon in global disputes. Central banks added more than 1,000 tons of gold to national reserves in 2024 and are on track to surpass that figure in 2025.
Anticipation of Rate Cuts
Several central banks around the world, including the U.S. Federal Reserve, the Bank of England and the European Central Bank, have embarked on a rate-cutting regime in 2025. Falling rates lower the opportunity cost of holding non-interest-bearing assets like gold. Buying in anticipation of lower bond yields may be contributing to the rally in gold.
Inflation Concerns
Unfortunately, inflation has been stickier than anyone wanted. This may be partially due to U.S. trade policy uncertainty and price pressure caused by tariffs. Still, whatever the reasons, rising prices have reinforced gold’s traditional role as an inflation hedge.
5 Gold ETFs to Buy Today
If you’ve decided to take advantage of the upward trend in gold, one of the best ways to invest is with gold exchange-traded funds, or ETFs. That is, ETFs that invest in gold and gold-related securities. ETFs are generally more convenient and cost-effective than owning physical gold, and they can be traded in any brokerage account as simply and easily as a stock.
Here are five of the best gold ETFs to buy now:
| ETF | Net Assets | Expense Ratio |
| SPDR Gold Shares (ticker: GLD) | $132 billion | 0.40% |
| iShares Gold Trust Micro (IAUM) | $5.1 billion | 0.09% |
| VanEck Merk Gold Trust (OUNZ) | $2.3 billion | 0.25% |
| iShares MSCI Global Gold Miners ETF (RING) | $2.3 billion | 0.39% |
| Direxion Daily Gold Miners Index Bull 2X Shares (NUGT) | $1 billion | 1.13% |
SPDR Gold Shares (GLD)
GLD boasts $132 billion in net assets and 100% of those assets are invested in pure gold. GLD is the largest physically gold-backed ETF on the market. The fund’s gold is held on behalf of shareholders with trusted custodians like JPMorgan Chase & Co. (JPM) in the U.S. and HSBC Holdings PLC (HSBC) in London.
In addition to being the biggest gold ETF, GLD is also the oldest. GLD was the very first gold-backed ETF to trade on U.S. markets, and it remains one of the most popular gold ETFs with both retail and institutional investors.
The fund has an expense ratio of 0.4%. After subtracting those expenses, the fund will track the price of gold bullion very precisely.
iShares Gold Trust Micro (IAUM)
Some of the biggest drawbacks to owning physical gold are the costs of buying it and the inconvenience of storing it. Gold dealers can charge high commissions and may add delivery fees on top. Storing gold safely and securely can be a hassle, and might require insurance coverage. That’s why investors appreciate IAUM.
IAUM is the lowest-cost physical gold ETF in the world. The fund has an expense ratio of just 0.09% but still offers indirect exposure to gold and still reflects the price of gold after expenses are accounted for.
This popular gold ETF has net assets of $5.1 billion and is part of the iShares family of ETFs owned and managed by BlackRock Inc. (BLK).
VanEck Merk Gold Trust (OUNZ)
OUNZ is perhaps the most versatile gold ETF trading today. This $2.3 billion fund not only provides investors with indirect exposure to the precious metal, but it also gives them the unique opportunity to gain direct exposure as well.
All OUNZ shareholders — no matter how large or small — have the option of exchanging all or a part of their holdings for physical gold bars or gold coins. In other words, OUNZ offers investors the convenience of an ETF but also the opportunity to take physical possession of gold if they so desire.
If an investor decides to make an exchange, they will find the process simple and straightforward. The expense ratio of this fund comes in at 0.25%.
iShares MSCI Global Gold Miners ETF (RING)
Investors looking for exposure to gold in an investment with a higher beta — which, in simple terms, means higher risk and higher potential reward — should consider RING. RING is an index ETF that mirrors the performance of the MSCI ACWI Select Gold Miners Investable Market Index after the fund’s expense ratio of 0.39% is subtracted.
RING is a cap-weighted ETF that invests in publicly traded gold mining and gold processing companies around the world. An investment in this fund allows investors to benefit from the price of gold and take advantage of market factors that can positively affect profitable, well-managed companies in the industry.
This is evidenced by the fact that while gold is up 50% this year, RING has appreciated 130% over the same period, based on its net asset value as of Oct. 9. Additionally, RING has a 12-month trailing dividend yield of 0.71%.
Direxion Daily Gold Miners Index Bull 2X Shares (NUGT)
Aggressive investors who want to trade gold rather than hold it for the long run should take a close look at NUGT. This fund is a leveraged ETF, which may not be suitable for more conservative investors, but when gold is moving it can be very profitable.
NUGT has a stated objective of providing two times the performance of the NYSE Arca Gold Miners Index, on a daily basis. That index contains domestic equities, American depositary receipts and global depositary receipts of U.S. and international companies in the gold mining and processing industry. In addition to those investments, the fund invests in derivative securities such as gold futures and swap agreements that provide twice the return of the benchmark.
The fund has been successful at achieving its objective, but the sponsor gives no assurance that it can meet its goal for any period of more than one trading day. NUGT has net assets of $1 billion, offers a dividend yield of 0.3% and charges an expense ratio of 1.13%.
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5 Best Gold ETFs to Buy in 2025 originally appeared on usnews.com
Update 10/10/25: This story was published at an earlier date and has been updated with new information.
