NUGT - NUGT: CPI Could Matter More Over The Next Couple Of Weeks
2024-06-10 00:35:03 ET
Summary
- The jobs data was hotter than expected, which accentuated the higher for longer situation that the US finds itself in.
- For gold, which offers no direct cash yield and costs to keep custody of, this is bearish.
- Miners are correlated to gold, and we think that while mostly already assumed, a belligerent inflation figure may cause some more downside action.
- We are long-term bullish on gold, but NUGT would not be the way to approach that angle.
The Direxion Daily Gold Miners Index Bull 2X Shares ETF ( NUGT ) is a daily resetting leveraged ETF focused on an index of gold miners, positively correlated to the performance of gold. The underlying index is well captured by the iShares Gold Miner ETF ( RING ) for the correlation heat map , but is formally the NYSE Arca Gold Miners Index (GDMNTR). The weights are a bit different ....
NUGT: CPI Could Matter More Over The Next Couple Of Weeks