After slumping in April, the VanEck Vectors Gold Miners ETF (NYSEArca: GDX) is getting its groove back. Over the past month, GDX, the largest gold miners exchange traded fund, is higher by more than 10% and some technical analysts are forecasting more upside for the heavily traded miners fund.
Gold has enjoyed greater demand in a low interest-rate environment as the hard asset becomes more attractive to investors compared to yield-bearing assets. However, traders lose interest in gold when rates rise since the bullion does not produce a yield.
“On the 8-year chart for gold, it is now becoming apparent that a large head-and-shoulders bottom is completing. This started to form way back in 2013, so this is a big base pattern that should lead to a major bull market. Given what is set to go down in the debt and derivatives markets, it should easily exceed earlier highs,” reports ETF Daily News on GDX.
Popular leveraged gold miners ETFs include the Direxion Daily Junior Gold Miners Index Bull 3x Shares (NYSEArca: JNUG), the triple-leveraged answer to the popular VanEck Vectors Gold Miners ETF (NYSEArca: GDXJ). The Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) is JNUG’s large-cap counterpart.