“Ashort-term GDX rally may yet be in the cards, as the fund enters expiration week fresh off a test of the $21 region, which has marked lows on multiple occasions over the past year — and GDX has room to rally about 16%, from Friday’s close at $21.57, before knocking on the door of peak front-month call open interest of 70,103 contracts at the deep out-of-the-money March 25 strike,” according to Schaeffer’s.
Inflation could serve as a catalyst for the yellow metal and for gold-related ETFs. By some metrics, the Fed has under-estimated U.S. inflation, which could prove beneficial to gold because the yellow metal is historically a popular inflation fighter.
Popular leveraged gold miners ETFs include the Direxion Daily Junior Gold Miners Index Bull 3x Shares (NYSEArca: JNUG). The Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) is JNUG’s large-cap counterpart.
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