Direxion Daily Gold Miners Bull 3X ETF

Here’s how Direxion ETFs can help you cut your losses and generate alpha. Take a closer look at the S&P 500 and key indicators from the first half of 2019.

Gold hit a fresh six-year high on Friday as trade tensions between the US and China escalated. The SPDR Gold Shares ETF (GLD) closed up 2%.

Amid the trade war, weakening economic indicators, and the yield curve inversion, Jeffrey Gundlach believes the Fed has lost control of interest rates.

Jeffrey Gundlach sees upside potential in gold prices as negative-yielding debt rises worldwide. He sees gold rising to $1,600–$1,700 per ounce.

Today, bond yields are sinking and stock markets are tanking as markets become fearful of an upcoming recession.

Gold prices received a boost after President Trump’s tweet that 10% duties would be levied on $300 billion of Chinese goods starting on September 1.

After the turnaround in gold prices that began at the end of 2018, the fortunes for gold stocks are also looking brighter.

Gold price’s reversal this year has created opportunities in gold stocks. The SPDR Gold Shares ETF (GLD) had gained 11% year-to-date as of Friday.

Ray Dalio mentioned in a LinkedIn post on Wednesday that it’s important for investors to explore the market paradigm in which they’re currently operating.

Gold prices have seen a reversal in the last month or so. The SPDR Gold Shares ETF (GLD) gained 8.0% in June alone.

On July 2, President Trump nominated Judy Shelton to the Fed’s board. Shelton is an advocate of the gold standard.

Among miners, Eldorado Gold (EGO), New Gold (NGD), IAMGOLD (IAG), and Barrick Gold (GOLD) have seen the highest gains of 50.6%, 44.4%, 40.3%, and 36.4%, respectively.

After remaining soft for the first five months of the year, gold prices (GLD) have seen a sudden turnaround since the end of May.

Goldman Sachs (GS) has long been bullish on gold. In March 2018, the bank turned positive on gold (IAU) for the first time in more than five years. It’s since been advising investors to turn defensive due to its forecast of increased risk, recommending that investors go for high-quality stocks and gold.

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 futures registered their single largest one-day jump of 2.8% on June 20 following the Fed’s dovish stance at its June meeting. While the Fed kept rates unchanged, it hinted at future rate cuts if the conditions warrant them, which sent gold prices soaring.

During DoubleLine’s investor webcast on June 13, Jeffrey Gundlach said, “I am certainly long gold.” His call on gold is based on his expectation that the US dollar (UUP) will finish lower this year.

Fed rate cuts Fed policymakers are set to meet on June 18 and 19. Whereas the market has not priced in a rate cut in June, at least two rate cuts are expected by the end of the year. Amid the overall slowdown, US employment had been a bright spot until last month’s jobs report showed fissures may be appearing in the […]

Like many other analysts, Deutsche Bank (DB) is also bullish on gold (GLD) prospects.

Gold prices (GLD) haven’t been going anywhere for the past few months. However, Goldman Sachs (GS) is still bullish on the metal.

JPMorgan Chase (JPM) thinks that gold prices (GLD) should go higher. Right now, the Fed is patient on rate hikes.

Agnico Eagle Mines’ (AEM) stock has significantly outperformed its peers year-to-date. Up to April 25, AEM’s stock has risen 43.1%.

Newmont’s gold production rose by 2% YoY to 1.23 million ounces.

Agnico Eagle Mines’ (AEM) forward multiple of 10.3x, the highest among senior and intermediate gold miners, is 12% higher than its trailing-five-year average and 75% higher than its peers’ (GDX) (GDXJ).

Gold prices have fallen 3.6% this year after falling ~1.9% in 2018, significantly underperforming broader markets.

Analysts expect Newmont to report revenues of $1.83 billion for the first quarter. This estimate implies growth of 0.5% year-over-year.

Barron’s reported that Deutsche Bank (DB) analyst Chris Terry has increased gold’s (GLD) (IAU) target price to $1,350 per ounce for 2019.

Newmont Mining stock returned 3.2% in the first quarter, almost half the gains in the VanEck Vectors Gold Miners ETF in the same period.

Barrick Gold underperformed its senior and intermediate peers as well as the broader benchmark index during the first quarter of 2019.

Analysts’ ratings According to Thomson Reuters, of the 15 analysts covering Newmont Mining (NEM), 67.0% have given the stock a “buy” rating, 20.0% say “hold,” and 13% have a “sell” rating on the stock. Its target price implies a potential upside of 15.3% based on its current price of $34.9. In the last three months, Newmont’s “buy” ratings have […]

Among major gold (GLD)(IAU) mining and gold streaming companies (GOAU), Wheaton Precious Metals (WPM) is analysts’ favorite and has received the most “buy” recommendations at 91%.

Gold miners usually act as a leveraged play on gold prices. In 2018, the VanEck Vectors Gold Miners ETF (GDX) fell 9.3%, amplifying the 1.9% fall in gold prices (GLD).

Gold prices (GLD) started 2019 on a relatively soft note. After a dismal fourth quarter, the stock markets have recovered remarkably in 2019.

Today, Newmont Mining (NEM) announced a conditional special dividend to shareholders if its proposed merger with Goldcorp (GG) goes through.

Another factor that added to the downward pressure on yields came after the Fed’s more-dovish-than-expected take on future rate hikes.

On March 22, gold prices have been gaining due to safe-haven bids led by weaker-than-expected economic data from the Eurozone (HEDJ).

In a letter to Newmont Mining’s CEO, Paulson & Co. said it doesn’t favor Newmont Mining’s $10 billion merger with Goldcorp (GG).

If a company has high debt but has the capacity to repay it through its earnings, then the debt likely won’t be much trouble for the company.

The Federal Reserve’s two main objectives are stabilizing prices and maximizing employment.

Of the 20 analysts covering Kinross Gold (KGC) as per the consensus compiled by Thomson Reuters, 40% have given it “buy” ratings, and 55% have given it “holds.”

Kinross Gold (KGC) has maintained its gold price assumption of $1,200 per ounce for estimating reserves and $1,400 per ounce for estimating resources since 2011.

On February 25, Barrick Gold (GOLD) put in an unsolicited bid to acquire Newmont Mining (NEM).

Gold prices (GLD) fell by over 2.5% in the week ended March 1, their biggest weekly decline since August 2018.

In a press release today, Newmont Mining said that Barrick’s unsolicited negative premium proposal is not in shareholders’ best interest.

At the end of 2018, Barrick Gold (GOLD) reported mineral reserves of 64.5 million ounces—a decline of 3.4% YoY.

The Federal Reserve has two main objectives: price stability and maximizing employment.

According to the gold demand trend for Q4 2018 released by the World Gold Council, central banks are on the biggest gold (GLD) buying spree in the last 50 years.

When it comes to investing in stocks, Berkshire Hathway’s (BRK.A) chair, Warren Buffett, and Bridgewater’s founder, Ray Dalio, have similar advice.

Newmont Mining (NEM) reported reserves of 65.4 million ounces for 2018—4.5% lower compared to 2017.

Today, Barrick Gold (GOLD) made an unsolicited bid for its rival Newmont Mining (NEM) in an all-share deal.

Newmont Mining (NEM) reported its fourth-quarter earnings results before the market opened on February 21.

Today, Barrick Gold outlined a proposed framework for the resolution of the outstanding dispute between subsidiary Acacia Mining and the government of Tanzania.

After underperforming its peers (GDX) (NUGT) in 2018, Kinross Gold (KGC) has continued that underperformance this year.

Gold’s price saw its fourth consecutive positive monthly return in January. It rose ~3% in the month after its rise of 4.9% in December.

Gold’s price has risen 2.2% year-to-date after falling ~1.9% in 2018. Gold saw its fourth consecutive positive monthly return in January.

Gold’s price (GLD) saw its fourth consecutive positive monthly return in January. It rose ~3% after December’s rise of 4.9%.

On November 14, 2018, Pan American Silver announced that it was buying Tahoe Resources in a $1.07 billion cash and stock deal.

Royalty and streaming mining companies’ valuation multiples (GOAU) (NUGT) are usually higher than those of their mining peers.

In 2018, as gold prices (GLD) fell 1.9%, the VanEck Vectors Gold Miners ETF (GDX) multiplied that loss by falling 9.3%.

The consolidation in the gold sector has already taken a major step up, with two of the largest miners announcing mergers.

Analysts’ sentiments toward IAMGOLD (IAG) have been changing for the better in the past few months.

Geopolitical concerns are expected to remain heightened throughout 2019.

2019 has started on a relatively soft note for gold prices.

In 2018, as gold prices (GLD) fell 1.9%, the VanEck Vectors Gold Miners ETF (GDX) amplified that loss by falling 9.3%.

Whereas several gold (GLD) mining companies are likely to see M&As (mergers and acquisitions), Agnico Eagle Mines (AEM) may not be one of them.

Newmont Mining (NEM) and Goldcorp’s (GG) deal, the gold space’s latest mega-merger, may suggest miners are getting serious about turning things around for stakeholders.

Goldman Sachs’ (GS) chief equity strategist, David Kostin, expects the S&P 500 (SPY) to reach 3,000 by the end of 2019.

Newmont and Goldcorp announced that they have entered an agreement in which NEM will acquire all of the outstanding GC shares in a stock-for-stock transaction valued at $10 billion.

Jim Cramer is advising investors to invest in gold if they’re concerned about the Fed’s interest rate policy and the US-China trade war.

On January 10, Goldman Sachs raised the price forecast for gold to $1,325, $1,375, and $1,425 per ounce for the next three, six, and 12 months.

One of the major overhangs on Barrick (GOLD) stock of late has been its subsidiary Acacia Mining’s issues with the Tanzanian government regarding taxes.

The Barrick Gold–Randgold Resources (GOLD) merger recently completed, with the trading of new shares starting on January 2, 2019.

In contrast to Bank of America Merrill Lynch’s bullish view on gold (GLD) in 2019, JPMorgan Chase (JPM) expects gold (NUGT) and silver’s (SLV) performance to remain to lukewarm—at least in the first half of 2019.

For a large part of the year, gold prices (GLD) have languished due to a strong US dollar (UUP), hawkish Fed rate hike outlook, and rising equity markets.

Volatility (VXX) has made a comeback in the markets this year after a prolonged calm. Last year was particularly calm as volatility plunged to a multi-decade low.

For most of the year, gold prices (GLD) have languished, thanks to a strong US dollar (UUP), hawkish Fed rate hike outlook, and strength in the equity markets.

The United Kingdom is set to leave the European Union (HEDJ) in March. A Withdrawal Agreement has yet to be approved by both the UK and European parliaments if the UK is to leave in a planned and orderly way.

During an investor webcast on December 11, DoubleLine CEO Jeffrey Gundalch painted quite a bearish picture of stocks, bonds, and the US economy (SPY)(DIA).

The World Gold Council (or WGC) chief Market Strategist and Head of Research, John Reade, analyzed gold’s performance in 2018.

Similar to Bank of America, Goldman Sachs (GS) isn’t bullish on stocks’ prospects next year.

In March this year, Goldman Sachs (GS) turned bullish on gold for the first time in the last five years.

Of all the major silver stocks, Tahoe Resources (TAHO) is trading at the lowest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 3.3x.

Yamana Gold (AUY) announced that it entered into an agreement to sell its Gualcamayo mine in Argentina to Mineros SA.

Since equities have slumped in October, investors are reassessing the price they should be paying for the forward earnings.

New Gold plans to announce its third-quarter results after the market closes on October 24, followed by a conference call to discuss the results on October 25.

By October 17, Agnico Eagle Mines (AEM) has lost 20.3% of its value year-to-date, while the VanEck Vectors Gold Miners ETF (GDX) had fallen 14.3%.

After significantly outperforming its peers (GDX)(NUGT) in 2017, Kinross Gold (KGC) has underperformed this year.

In this series, we’ll look at analysts’ ratings for the major gold miners. All major senior and intermediate gold miners have fallen YTD.

While gold miners have been out of favor for a long time, that may be about to change. As uncertainty in the market is increasing, gold prices are poised to rise.

As the risk-off sentiment takes hold in the market, investors could rotate out of more growth-oriented and expensive stocks and into relatively stable, defensive stocks.

Gold prices have failed to draw a bid in 2018 despite many market uncertainties, including trade tensions and other geopolitical concerns.

As of September 24, New Gold (NGD) has fallen 75%, significantly underperforming its peers.

Of all the stocks we’ve covered in this series, Tahoe Resources (TAHO) is trading at the lowest enterprise-value-to-forward-EBITDA multiple of 3.5x.

It’s no secret that President Trump wants a weaker dollar to support the country’s exports.

Gold is down only 8% this year, but it’s off almost 13% from its high. For some reason, it has lost its allure as a hedge to inflation and global turmoil.

As summer winds down, what sectors (other than technology) are interesting?

According to the COT report for the week ended August 24, detailing holdings as of August 21, money managers were net short on gold for the ninth straight week.

Gold prices (GLD) recorded their first weekly gain last week after six weeks of continued losses. What changed?

One of the culprits for weaker gold prices in 2018 is the strength in the US dollar.

To a point, companies try to optimize their debt-to-equity mixes. In fact, it isn’t always bad to carry debt if a company can repay it through earnings.