Spot Gold Holds Above $2,000 As Traders Brace For Fresh Economic Data To Close 2023: How To Play The Mining Momentum
Portfolio Pulse from Melanie Schaffer
Spot gold has maintained its position above $2,000, with the Direxion Daily Gold Miners Index Bull 2X Shares (NUGT) rising by 1.2%. This comes in anticipation of the November jobs report and the upcoming FOMC meeting. NUGT, which aims to outperform the NYSE Arca Gold Miners Index by 200%, includes significant holdings in Newmont Corp (NEM), Barrick Gold Corp (GOLD), and Franco-Nevada Corp (FNV). The ETF is forming a bull flag pattern, suggesting a potential 38% rise if the pattern holds. Conversely, for bearish traders, the Direxion Daily Gold Miners Index Bear 2X Shares (DUST) is an option. Leveraged ETFs like NUGT and DUST are recommended for experienced traders and not for long-term investment strategies.
December 06, 2023 | 7:02 pm
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NEGATIVE IMPACT
DUST offers a bearish play on the gold mining index for traders anticipating a negative reaction to upcoming economic data.
DUST is relevant for traders who believe that new economic data may negatively impact gold prices, potentially leading to a decline in the ETF's value.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Franco-Nevada Corp's stock could be affected by NUGT's movements and the broader sentiment in the gold mining market, as it is part of NUGT's portfolio.
FNV, as a part of NUGT's holdings, may see its stock price influenced by the ETF's performance and the overall momentum in the gold mining sector.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Barrick Gold Corp could experience stock price movements in line with the trends in NUGT, given its representation in the ETF's holdings.
GOLD's stock price is likely to be impacted by the performance of NUGT and the general trends in the gold mining industry.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Newmont Corp, as a significant holding in NUGT, may see its stock price influenced by the ETF's performance and the overall momentum in the gold mining sector.
As NUGT holds a significant percentage in NEM, any substantial movement in NUGT due to gold price volatility could affect NEM's stock price.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
NUGT is experiencing a rise due to the strong performance of spot gold, potentially increasing further if the bull flag pattern is recognized and it surpasses the 200-day SMA.
The positive momentum in spot gold prices and the formation of a bull flag pattern in NUGT's chart suggest a bullish outlook for the ETF in the short term, especially if it crosses the 200-day SMA.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90