The dollar has been one of the worst-performing developed market currencies this year, which has been an assist to gold at various points during the year. However, some currency traders believe the dollar can rebound. While that could be seen as a stumbling block to gold, there are ways for investors to prosper with the yellow metal even if the dollar rallies.
“Precious metals and gold stocks especially have begun a rebound that should last at least three or four more weeks. Due to a lack of an extreme ‘long-term’ oversold condition (like in each of the past four December’s) and the presence of nearby overhead resistance, we would not expect sizeable gains,” reports ETF Daily News. “Another reason is strong fundamentals for precious metals (namely declining real interest rates) are not yet in place.”
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 GDXJ. The Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) is JNUG’s large-cap counterpart.
For more information on the gold market, visit our gold category.