Gold’s Record Run Fuels VanEck Merk Gold Trust ETF Rally

The VanEck Merk Gold Trust (OUNZ) is capitalizing on a historic surge in the precious metal’s value. Gold is experiencing an extraordinary rally, propelled by expectations of interest rate cuts from the U.S. Federal Reserve, a weakening U.S. dollar, and persistent global economic and political uncertainties. These forces have driven bullion to unprecedented price levels in recent weeks, reinforcing its traditional role as a premier safe-haven asset.

A Powerful Convergence of Market Drivers

This impressive bull run has seen spot gold prices surge beyond $3,700 per ounce. This milestone represents a remarkable year-to-date gain of approximately 41% for 2025, building on a substantial 27% advance recorded the previous year. Analysts point to a powerful confluence of factors fueling this momentum:

• A pronounced dovish pivot from the U.S. Federal Reserve, which is now signaling a clear path toward lower interest rates
• A softer U.S. dollar, which enhances the appeal of dollar-denominated gold for international investors
• Aggressive accumulation of gold reserves by central banks worldwide, particularly those in emerging markets seeking portfolio diversification
• Sustained geopolitical friction and widespread economic instability, which continue to drive robust demand for protective assets

Uncompromised Access to Physical Bullion

The VanEck Merk Gold Trust ETF distinguishes itself through its direct approach to gold ownership. The fund’s assets are backed 100% by allocated, physical gold bullion held in the form of London Good Delivery bars. This structure is designed to eliminate the complexities and counterparty risks often associated with other gold investment vehicles that utilize derivatives or mining company stocks.

A defining feature of OUNZ is its unique physical redemption option. Authorized investors have the ability to exchange their shares for the actual physical gold, providing a tangible link to the underlying asset that offers a distinct advantage for those seeking direct ownership.

Should investors sell immediately? Or is it worth buying VanEck Merk Gold Trust?

Demonstrating Robust Performance

The ETF’s performance metrics underscore its strength during this bull market, with all data current as of the specified dates:

• Year-to-Date Return (as of Sept. 17, 2025): +39.29%
• Three-Month Return (as of Sept. 15, 2025): +8.95%
• One-Month Return (as of Aug. 31, 2025): +4.89%

Market liquidity for OUNZ shares remains strong, with average daily trading volumes consistently ranging between 614,670 and 867,832 shares. The fund has been trading very close to its net asset value (NAV), exhibiting minimal premiums or discounts of just 0.01% and -0.02%, respectively.

Positioning Within the Physical Gold ETF Arena

OUNZ operates in a competitive space alongside other physically-backed gold ETFs, including the larger SPDR Gold Shares (GLD), iShares Gold Trust (IAU), and the abrdn Physical Gold Shares ETF (SGOL). While these funds provide similar exposure to the gold spot price, they differ in their scale, expense ratios, and specific performance nuances.

The current historic rally in gold has created a powerful showcase for physically-backed ETFs. Amid this environment, the VanEck Merk Gold Trust, with its direct physical ownership model and redemption feature, is capturing significant investor attention.