By Tom Lydon
ETF Trends
With gold futures back above $1,300 an ounce and large-cap gold miners rebounding in significant fashion, mining ETFs such as the Market Vectors Gold Miners ETF (NYSEArca: GDX) and the Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT), the leveraged equivalent of GDX, are drawing plenty of attention.
The allure of NUGT is understandable. Gold miners are a volatile group to begin with and they jump, the moves can be stunning. For example, GDX moved above its 50-day moving average for the first time in nine months Monday, enough to send the ETF higher by 6.1%. NUGT soared more than 18% and is now up a jaw-dropping 40% in the past week.