*I use leveraged gold miners etf ($NUGT) to gain short term exposure to the gold miners etf ($GDX). However keep in mind that the miners don’t have a perfect 1 to 1 correlation with Gold prices.*
Gold and Gold Miners surged today partly based on the report that China’s central bank continues to buy gold at a healthy rate; with the goal of diversifying away from their US concentrated debt.
GDX closed at $22.69 (+1.16%) and $NUGT closed at $20.42 (+3.39%). This is exactly in line with our predicted trade path, and the expected sell off at the first resistance occurred today as planned. After the morning surge, $NUGT sold off to a daily low of $20.1 before climbing back up (intraday swing of 4%), providing a great opportunity to add to your positions at the low end of today’s range. If you missed today’s opportunity, be sure to follow my daily update post where I will indicate the most profitable entry regions in my opinion.
I expect GDX to continue its short term bullish momentum and break the first resistance and test the second resistance.
In line with my prediction, Gold climbed and tested the $1300+ region before selling off and closing just below at $1297. As at the time of writing this, it’s trading at $1299 and once again trying to test this resistance. Given the recent consolidation we had in gold at the lower end of the descending triangle, Gold will breakthrough $1300 and push up towards at least the downward sloping trendline.
Updates on the 10yr and USD will be posted tomorrow morning.