Gold Surges In Blue Skies, Mining Sector Prepares For Bull Cycle: This ETF Offers 2X Leverage During A Run Higher
Portfolio Pulse from Melanie Schaffer
Direxion Daily Gold Miners Index Bull 2X Shares (NYSE:NUGT) has seen a 33% increase since Feb. 28, driven by the rising price of spot gold, which has hit new all-time highs this week. NUGT, a double-leveraged ETF tracking gold and silver mining companies, is poised for further gains as it approaches a golden cross formation. Key holdings include Newmont Corp (NYSE:NEM), Barrick Gold Corp (NYSE:GOLD), and Franco-Nevada Corp (NYSE:FNV). The ETF is recommended for experienced traders due to its leveraged nature.
March 08, 2024 | 6:41 pm
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POSITIVE IMPACT
Franco-Nevada Corp is part of NUGT's portfolio and may see benefits from the ETF's leveraged gains in the gold sector.
As part of NUGT's portfolio, Franco-Nevada Corp's stock price is expected to benefit from the ETF's leveraged exposure to the gold market's upward trend.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Barrick Gold Corp, another major holding in NUGT, is positioned to benefit from the ETF's positive momentum in the gold market.
Barrick Gold Corp's stock is likely to see positive effects from NUGT's performance, given its significant representation in the ETF and the overall bullish trend in gold prices.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Newmont Corp is a key holding in NUGT, making up 30.05% of its portfolio, and may benefit from NUGT's leverage in the gold market.
As a significant holding in NUGT, Newmont Corp's stock price is likely to be positively impacted by the ETF's performance, which is buoyed by rising gold prices.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
NUGT has surged 33% due to the rising price of gold, with potential for further gains as it approaches a golden cross formation.
The surge in NUGT's price is directly tied to the performance of gold. As gold prices continue to rise, NUGT, being a leveraged ETF, is likely to experience amplified gains, especially as it nears a golden cross formation, a bullish signal.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100