A late January slide reminds investors that even gold doesn’t move up in a straight line. Still, the largest plain vanilla ETF dedicated to gold mining stocks is delivering a strong 2026 showing. That fund is higher by 13.48% as of Friday, Feb. 6. Accounting for those impressive data points, a case can be made that opportunity abounds for risk-tolerant traders with the Direxion Daily Gold Miners Index Bull 2x Shares (NUGT ). NUGT turns 16 years old in December 2026, making it one of the oldest geared ETFs on the market today.
The fund is designed to deliver 200% of the daily returns of the MarketVector Global Gold Miners Index. Translation: NUGT isn’t for the faint of heart and it should be as what it is – a daily instrument. For traders that understand the risks associated with leveraged ETFs, NUGT is worth monitoring over the course of 2026. The miners are often tethered to gold’s upside (and downside). That’s potentially advantageous as it relates to the Direxion ETF because some market observers believe the path of least resistance for gold is higher.
Gold Catalysts Could Lift NUGT
With an ETF like NUGT, traders need to be mindful that this isn’t a buy-and-hold fund. However, the good news is that many of catalysts that have supported upside remain in place.
“High inflation, or even hyperinflation, is unavoidable. The US government has never been this much in debt, and it is growing faster and faster as spending deficits grow higher and higher,” notes Morningstar’s Allan Roth. “There is the possibility of hyperinflation with the complete collapse of the dollar and other fiat currencies, along with the banking system (which almost collapsed during the global financial crisis).”
On the other hand, some traders may be positioning for near-term gold weakness. That would be bad news for miners, but good news for Daily Gold Miners Index Bear 2X Shares (DUST ) – NUGT’s bearish counterpart. It’s a risky bet to lay today. Still, with gold flirting with all-time highs, some traders may want to keep an eye on DUST.
“Understand that you are still buying (gold) it near the top of a real, inflation-adjusted price. That should carry a much higher weighting than a possible near-term price decline,” added Roth.
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