CA - DUST: Good For Volatility-Seekers But Not An Investment

2025-05-04 21:41:11 ET

Summary

• The Direxion Daily Gold Miners Index Bear 2X Shares ETF is designed for short-term traders to exploit gold price pullbacks, but not suitable for long-term bearish bets.
• The recent pullback in gold prices may be partly attributable to new production coming online from Artemis Gold's Blackwater property and Sierra Madre's Coloso project.
• Despite short-term pullbacks, I remain bullish on gold long-term and rate DUST as a Hold, suitable only for risk-seeking, short-term traders.

Introduction

Since reaching an all-time high of $3,500/oz on April 22nd, gold prices have mostly down-trended and are back at levels first reached in early April. This is not a complete surprise as the metal has been on quite the tear over the last year; after all, few prices, if any, consistently rise by meaningful amounts without the occasional draw-down....

For further details see: