|Bid||38.22 x 3100|
|Ask||38.24 x 1800|
|Day's Range||36.70 - 38.60|
|52 Week Range||14.06 - 45.10|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||10.51%|
|Beta (5Y Monthly)||-0.28|
|Expense Ratio (net)||1.23%|
Gold prices touched a 7-year high as more coronavirus concerns continue to fuel a safe haven flight to assets like precious metals. “So far ... gold has demonstrated its safe-haven qualities and we stay long the metal,” UBS analysts led by Wayne Gordon said.
In the capital markets, the term “black swan” is not to be taken lightly, unless you're a bullish gold trader--then it's time to get heavy on precious metals. The coronavirus is putting a mixed martial arts-like stranglehold on the markets and if it turns into a black swan event in China or other parts of the world, it could spark a gold rally. “For gold really to move, it would be some kind of exogenous shock, which might push it higher,” Rhona O’Connell, INTL FCStone head of market analysis for EMEA and Asia Regions, told Kitco News.
The Direxion Daily Gold Miners Index Bull 3x Shares (NUGT) is a 3x leveraged exchange-traded fund (ETF) that should be used for short-term trades only. In fact, Direxion points out on their website that the returns the ETF seeks on its benchmark index, the Gold Miners Index, are for a single day. NUGT comes with a relatively hefty 1.23% expense ratio.
Gold prices have been relatively muted as investors are reading into Federal Reserve Chairman Jerome Powell’s neutral tone on the economy and the remaining wild card in the markets known as the coronavirus. Gold prices are slowly facing downward pressure as a risk-on sentiment creeps back into the markets following lesser cases of the coronavirus occurring. Tuesday is the first day of Powell’s testimony before Congress.
As the coronavirus outbreak continues to be the wild card in the markets, the safe haven of precious metals is in high demand, especially for exchange-traded funds (ETFs) that are backed by gold. ETFs have been stockpiling gold as more coronavirus news continues to invade the financial markets. The ETFs trade like a stock but track the price of gold, with the commodity put into storage to back the shares.
While the U.S. markets seem to push the coronavirus outbreak from the forefront of their worries, China continues to struggle with its effects as more cases of the virus surface and claim more lives. This is pushing precious metal prices like gold steadily higher. Asian and European shares were higher overnight as traders and investors at least for now have pushed aside the coronavirus outbreak in China.
The Federal Reserve decided to keep rates unchanged on Wednesday and this could be gold’s main driver going forward if the data-dependent central bank deems the economy healthy enough. This could support gold prices even if the market experiences a lull in precious metal purchases after the coronavirus craze eventually fades. Amid the outbreak, it was risk-off for investors as they piled into safe havens like bonds and gold.
Thanks to as much as a 500-point drop in the Dow Jones Industrial Average in Monday’s trading session, it was risk-off for investors as they piled into safe havens like bonds and gold. Gold was on a path of bearishness after a U.S.-China “phase one” trade deal put the risk back into the markets. “After almost three weeks of consolidation, gold has now pushed higher on risk-aversion as the Coronavirus position worsens and the markets move away from risk,” said Rhona O’Connell, head of market analysis for EMEA & Asia at INTL FCStone, in a daily note.
Bond prices went higher, inversely causing yields to fall, but the safe-haven scramble couldn’t make its way to gains for gold as concerns regarding the coronavirus in China made its way into the capital markets. The gold market reacted negatively as China is a major purchaser of the precious metal. “This unfavourable development could not come at a more critical time with many people expected to travel within China before the Lunar New Year,” wrote Lukman Otunuga, senior research analyst at FXTM, in a daily research note.
The stock market when on to reach more record highs on Thursday thanks to a bevy of positive economic data, such as less jobless claims and better-than-expected retail numbers. However, Bridgewater Associates ...
The U.S.-China “phase one” trade deal that is set to be signed today is injecting a healthy dose of optimism into the markets, which is keeping gold and silver prices at bay. After hitting highs the previous week, this week could see a rollercoaster-like drop as precious metals traders brace themselves for the wild ride. “Gold and silver appear to be headed lower, and there doesn’t appear to be anything that will slow the metals from another trend reversal,” wrote Todd “Bubba” Horwitz in Kitco News.
Hold the gold—it's a simple strategy in an uncertain market that could turn any day by various risk-based factors, but Longview Economics CEO Chris Watling suggests another reason that could help support gold prices is the Federal Reserve's repo program. The central bank uses the program to adjust the supply of reserve balances to keep its interest rate target in check. “It is putting a lot of liquidity, a lot of dollar money, into the system, and that is supporting the price,” Waitling said in a CNBC report.
Escalating U.S.-Iran tensions after an air strike that killed an Iranian general last week fed into strength for gold prices to start the trading week. On Tuesday, gold rallied to a 6 ½-year high, but fell the following Wednesday after U.S. President Donald Trump eased the markets following a retaliation from Iran that caused no damage or casualties on U.S. airbases. “Gold is down sharply as U.S-Iran tensions have been deescalated,” wrote Bill Baruch in Kitco News.
U.S.-Iran tensions escalating after an air strike that killed an Iranian general last week are feeding into strength for gold prices. In Tuesday’s trading session, gold rallied to a 6 ½-year high and analysts ...
Last Friday’s market session threw its first speed bump of 2020 at investors after a U.S. airstrike on Baghdad resulted in the death of a top Iranian general. Investors flocked to safe havens on fears that the airstrike would result in a larger conflict—this allowed gold to hit a 6-year high. Gold went up 1.5% to reach above the $1,550 per ounce price mark.
While this strategy is highly beneficial for short-term traders, it could lead to huge losses compared to traditional funds in the fluctuating or seesawing markets.
A renewed risk-on sentiment in stocks put gold gains on the backburner near the end of 2019, but the precious metal’s fortunes could turn in 2020, according to City Index technical analyst Fawad Razaqzada. ...
U.S. gold futures also edged up 0.3%, to $1,492.80. For many investors, gold is the standard in precious metal investing, which has become more accessible than ever thanks to options via an exchange-traded fund (ETF) wrapper like the SPDR Gold MiniShares (GLDM) . Gold ETFs can be bought and sold freely via an exchange when compared to physical gold.
Gold prices have veered lower in recent weeks as riskier assets have come back into style, but the case for bullion, one of 2019's best-performing commodities, remains strong heading into next year and ...
Some commodities market observers believe that trend will continue in 2020, potentially spelling opportunity for nimble traders with geared ETFs such as the Direxion Daily Gold Miners Bull 3X ETF (NUGT) and Direxion Daily Jr Gold Miners Bull 3X ETF (JNUG) . NUGT seeks daily investment results, before fees and expenses, of either 300% or 300% of the inverse (or opposite), of the performance of the NYSE Arca Gold Miners Index. JNUG seeks daily investment results, before fees and expenses, of 300% of the performance of the MVIS Global Junior Gold Miners Index.
In Monday's early trading session, the euphoria of the capital markets on last week's "phase one" trade deal may already be losing steam, especially when looking at steady gold prices. Rather than prices falling from a renewed risk-on sentiment, gold prices held, showing signs that bullish gold investors are skeptical of a the trade deal.
“The gold market is adding to strong gains following the latest Federal Reserve monetary policy announcement and after data highlighted weaker-than-expected producer inflation pressures,” wrote Niels Christensen in a Kitco News report. The index is a modified market capitalization-weighted index comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in mining for gold and, to a lesser extent, in mining for silver.
What happens with the U.S.-China trade deal will remain a major market mover as both sides struggle to complete a “phase one” stage agreed to in October. “Trade negotiations, rather than the U.K. elections or the December FOMC (Federal Open Market Committee meeting), continue to set the tone of trading for the gold market,” said Standard Chartered. Traders looking to buy the dip can play gold miners and look at the Direxion Daily Gold Miners Bull 3X ETF (NUGT) , which makes a play on gold miners.
Leveraged ETFs use the futures markets to magnify the returns of a specific index. These ten leveraged ETFs are the most popular with investors.
Below is a look at ETFs that currently offer attractive buying opportunities. The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively. Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term 'buy on the dip' opportunity, given the longer-term uptrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.