(GBS) Gold Bullion Securities ETC - Ratings and Ratios

Gold Bullion Securities (GBS) is an Exchange-Traded Commodity (ETC) that provides investors with a straightforward and cost-effective means of gaining exposure to the gold market. By tracking the spot price of gold, GBS offers a return equivalent to the movements in the gold price, minus the applicable management fee. The ETC is backed by physical gold allocated to HSBC Bank plc, the custodian, which only accepts gold that meets the London Bullion Market Associations (LBMA) Good Delivery standards. The physical gold is segregated, individually identified, and allocated, ensuring that investors have a direct claim on the underlying asset.

With a total Assets Under Management (AUM) of €3.43 billion, GBS is a significant player in the gold ETC market. As a French-listed ETF, GBS is categorized under Commodities - Precious Metals, offering investors a targeted exposure to the gold market. The ETFs design allows investors to benefit from the gold price movements without the need to physically hold the metal.

Analyzing the technical data, we observe that the last price of GBS is €269.55, slightly above its 20-day Simple Moving Average (SMA) of €268.57. The 50-day SMA stands at €265.99, while the 200-day SMA is €243.48, indicating a longer-term uptrend. The Average True Range (ATR) is 1.33%, suggesting moderate volatility. Given the current technical setup and the fundamental data, we forecast that GBS will continue to track the gold spot price, with a potential target of €275.00 in the short term, driven by the ongoing demand for safe-haven assets and the ETCs low-cost structure.

Our forecast is based on the assumption that the gold price will remain supported by global economic uncertainty and the ongoing demand for precious metals. With its robust AUM and the custodians adherence to LBMA standards, GBS is well-positioned to continue offering investors a reliable and cost-effective means of accessing the gold market. As such, we expect GBS to remain a popular choice among investors seeking exposure to gold, with a potential price target of €280.00 in the medium term.