Stars Aligning for Upside by This Gold ETF

The scintillating pace established by gold last year is extending into 2026. The WisdomTree Efficient Gold Plus Gold Miners Strategy Fund (GDMN) surged almost 42% since the start of 2026.

Indeed, that’s an outstanding run in less than two months. It may prompt investors to wonder if GDMN’s upside from here is capped.

“The recent run-up in gold prices probably warrants a pause, but we see continued investment demand as a feature of 2026,” noted the World Gold Council (WGC). “Geopolitics is likely to remain the primary driver, with macro conditions potentially reinforcing the trend – most plausibly via a renewed rise in inflation expectations amid fiscal support ahead of the mid-term elections, pushing the stock–bond correlation higher.”

Some prudence is warranted with gold and ETFs such as GDMN over the near-term. However, that doesn’t imply the yellow metal lacks for catalysts.

GDMN Can Keep the Good Times Rolling

Some speculate that President Trump’s appointment of Kevin Warsh as the next Federal Reserve chairman could disappoint in terms of this year’s rate-cutting outlook. Still, there are reasons to believe gold and ETFs like GDMN have more upside ahead.

Those include the possibility of spiking inflation. Inflation has been relatively subdued in recent months. Still, as the WGC points out, there are several factors that could stoke an inflationary resurgence. These include “lagged tariff markets” and a tight labor market. Other factors could reignite inflation, potentially boosting gold prices in the prices.

“Prospective fiscal support through possible renewed Affordable Care Act (ACA) subsidies and tariff ‘dividend checks’ ahead of mid-terms elections,” added the WGC. “Looser financial conditions than headline figures suggest, given low household debt servicing ratios, a lower need by large corporations to fund themselves via debt, and a sizeable private credit market.”

Global market participants, including those in the wealth management community, remain enthusiastic about the yellow metal’s prospects. January’s affinity for gold ETFs highlights this.

“Global gold ETF flows provided plenty of support adding 120t in January to take holdings to a new record, valued at US$669bn. The flows were dominated by Asia (62t) and North America (43t) while Europe saw more modest inflows (13t),” concluded the WGC.

Disclosures

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