China Cuts Interest Rates – Gold Stays Solid (NUGT)Author: Victor AlagbeLast Updated: March 12, 2020 The Direxion Shares Exchange Traded Fund Trust has been moving between bullish sessions and bearish session in line with the general state of the gold market. The price of the gold is in turn being controlled by the global market as the Chinese economy continues to to present a weak outlook. The Wall Street Journal reports that the price of gold fell yesterday as China moves to stabilize its economy.Gold for December delivery fell by 1.3% ($15.30) to settle at $1,138,30 per troy ounce on the Comex. The decline recorded yesterday deviates from the seven-week high price that gold recorded last Friday after China slashed its interest rates in a bid to reduce the bank reserve requirements. The Chinese situation paints a gloomy outlook for the yellow metal, gold ETFs and the market at large. In the words of Peter Hug, global trading director at Kitco Metals it is not likely that a major swoon in gold prices is imminent, at least until we see whether this stabilization holds.”Analysts think gold is still solidDespite the dark clouds that the Chinese situation is casting on the market for the yellow metal, some analysts still think that gold is a solid investment against all odds. This is especially true in European markets. For instance, the bullion touched a 7-week high of $1,169 yesterday morning in London.Leading the bullish charge for gold is Peter Dixon, a global economist at Commerzbank who believes the prior decline in the price of yellow metal is due to a panic reaction by investors. He is confident that gold will reward bulls in the medium to long terms. In his words, “Gold is holding its own well despite the heavy losses suffered by commodities across the board.”Tom Kendall from ICBC Bank is also bullish about the prospects of gold especially as the Fed delays the raising of interest rates in the U.S. Kendall says, “Looking further ahead, the [US interest] rates outlook has become more gold-friendly in our view, and the metal could regain the 1180/1230 zone.”Where is the Direxion Shares Exchange Traded Fund Trust headingIt is still a little too early to know how gold ETFs might fare in today’s session or in the coming days. However, Wall Street will agree that it is futile to attempt timing the gold market or ETFs playing in that space because of the current chaotic nature of the factors at work.Business Insider describes the market accurately when it said, “Whatever word you choose to describe it — chaotic, wild, skittish, or others — the movements during the session were ridiculously rapid”.