25 Jun

Gold Breaches $1,400: What’s the Next Stop?

WRITTEN BY Anuradha Garg

Gold’s performance

Gold is now trading close to a six-year high following the Fed’s dovish pivot at its June policy meeting. After being range-bound for the last five years, gold has finally broken out and its outlook is bullish.

Gold Breaches $1,400: What’s the Next Stop?

Factors supporting gold

The SPDR Gold Shares ETF (GLD) has gained 9.7% in the last month, significantly outperforming broader markets. The S&P 500 (SPY), Dow Jones Industrial Average (DIA), and NASDAQ Composite (QQQ) have gained 2.6%, 3.2%, and 3.7%, respectively. The Fed pivoted after US-China trade war tensions escalated with Donald Trump’s tweet in May, supporting gold. Other factors supporting gold include the US dollar (UUP) weakening on prospects of Fed rate cuts, geopolitical tensions, and weaker economic numbers.

Gold and gold ETFs

Gold miners’ prices have changed even more than gold’s. However, this is not surprising given that miners are usually leveraged bets on gold, amplifying its performance. For example, The VanEck Vectors Gold Miners ETF (GDX) has gained 21.7% in the last month, while GLD has gained 9.7%. Investors in even more leveraged funds such as the Direxion Daily Gold Miners Index Bull 3X Shares ETF (NUGT) and the Direxion Daily Junior Gold Miners Index Bull 3X Shares ETF (JNUG) have made a killing. This month, they have returned a whopping 75.3% and 68.3%, respectively. To learn more, read A Perfect Storm for Gold: All Macro Drivers Align.

Latest articles

President Trump eased the Huawei ban on June 28. Since then, investors have been closely monitoring how US officials implement the policy change.

Norfolk Southern will report its second-quarter earnings results on Wednesday. The company is expected to report an adjusted EPS of $2.79.

Dish Network’s (DISH) wireless business is currently in the making, as cord cutting has hit US satellite pay-TV providers harder than their cable counterparts.

Halliburton (HAL) reported its second-quarter earnings on Monday before the markets opened. The company's earnings rose sequentially.

22 Jul

Economic Data and Earnings Before the Fed's Meeting

WRITTEN BY Mohit Oberoi, CFA

Economic data and earnings will keep investors busy this week. More than a quarter of the S&P 500 companies are scheduled to release their earnings.

22 Jul

Will Chevron Outperform ExxonMobil in Q2?

WRITTEN BY Maitali Ramkumar

Chevron (CVX) and ExxonMobil (XOM) are scheduled to post their second-quarter earnings results on August 2.