ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Leveraged & Inverse ETF Channel
  2. Gold Miners Creep Higher Thanks to Weak Retail Sales
Leveraged & Inverse ETF Channel
Share

Gold Miners Creep Higher Thanks to Weak Retail Sales

Ben HernandezMay 17, 2021
2021-05-17

The dollar took a step back as a result of weaker-than-expected retail sales data last week, propping up leveraged gold miner funds and the Direxion Daily Jr Gold Miners Bull 3X ETF (JNUG B-) and the Direxion Daily Gold Miners Bull 3X ETF (NUGT B-).

“Gold prices continued to rally as the dollar eased in the wake of the softer-than-expected retail sales report. Import prices along with export price rose more than expected,” an FX Empire report said. “Yields declined on Friday for a third straight trading session which weighed on the greenback and buoyed the yellow metal.”

The economic reopening and injection of stimulus dollars may have given analysts a predilection for stronger retail sales data. That, however, didn’t come to fruition, at least during the month of April.

“U.S. retail sales unexpectedly stalled in April,” the FX Empire report said further. “The Commerce Department reported that April retail sales were unchanged following a 10.7% surge in March, an upward revision from the previously reported 9.7% increase.”

“Expectations were for retail sales to rise by 1% in April,” the report added further. “Excluding automobiles, gasoline, building materials and food services, retail sales dropped 1.5% last month after an upwardly revised 7.6% increase in March. Core retail sales correspond most closely with the consumer spending component of gross domestic product.”

Inflation Fears Push 'JNUG' and 'NUGT' Higher

Investors may be re-developing an appetite for gold again as a safe haven play.

Weaker purchasing power as a result of inflation could be feeding into bearishness for the dollar. Rather than make a play on gold to capitalize on greenback weakness, investors can also use miners to enjoy more price stability.

JNUG, which is up 4% the past month, gives 200% exposure to the daily performance of the MVIS Global Junior Gold Miners Index. The index includes companies from markets that are freely investable to foreign investors, including “emerging markets,” as that term is defined by the index provider.


Content continues below advertisement

JNUG Price % Change

NUGT is up 11% the past month, and seeks daily investment results equal to 200% of the daily performance of the NYSE Arca Gold Miners Index. The index is comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in the mining for gold, and, in mining for silver.

NUGT Price % Change

For more news and information, visit the Leveraged & Inverse Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X