Record hot inflation providing tailwinds for these leveraged gold ETFs

IIf you are bullish on gold, then you see a lot of green in your trading portfolio. Record inflation is providing strong tailwinds for traders not only in gold, but also in gold mining ETFs.

Capital markets continue to record more inflation data, and right now it’s hotter than an Arizona desert in August. That said, however, traders need to watch if it has peaked.

“Markets are digesting inflation accelerating to new four-decade highs in March after rising 8.5% from a year earlier,” Kitco reports. “On top of that, the US Producer Price Index (PPI) rose 11.2% from a year ago in March, posting a new record high.”

“Many economists expect the March numbers to mark a spike in inflation, citing a deceleration in core inflation, base effects and some easing in supply chain issues,” the Kitco report adds.

2 performing artists

In the meantime, traders looking to continue playing on the strength of gold can opt for mining funds that can offer double leverage for magnified gains. As such, an ETF to consider is the Direxion Daily Gold Miners Bull 2X ETF (NUGT)up 55% over the year.

NUGT invests in swap agreements, futures, short positions or other financial instruments which, in combination, provide an inverse or short leveraged exposure to the index equal to at least 80% of the assets net of the fund. The Index is a modified market capitalization weighted index comprised of publicly traded companies that operate globally in developed and emerging markets and are primarily involved in gold mining and, to a lesser measure, money.

Another option is the Direxion Daily Jr Gold Miners Bull 2X ETF (JNUG)which is up almost 40% in 2022. JNUG seeks daily investment results of 200% of the performance of the MVIS Global Junior Gold Miner Index.

The index tracks the performance of foreign and domestic companies engaged in gold and silver mining. JNUG was on the list of best performing leveraged/inverse ETFs this week, due to rising inflation concerns across the globe.


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