rtmark
LearnBonds.com

Data Could Spook Gold and Direxion Shares Exchange Traded Fund Trust (NUGT)

Gold Bars - Square NUGT - Gold Price

Gold investors were not happy last week after the bullion ended flat for the week and the Direxion Shares Exchange Traded Fund Trust failed to hold on to gains. The bullion had earlier touched a weekly high of $1,352.7 an ounce on Wednesday before it dropped down to $1,327.80 an ounce on Friday. The U.S. Federal Reserve dampened the outlook on gold on Friday after it hinted that it would soon raise interest rates.

As at Friday, the Fed’s body language towards raising interest rates caused the fed funds future to jump to a 30% probability for a September rate hike. The Fed funds future still has a 50% probability for a December rate hike. In response to the renewed talk of a rate hike, holdings in the SPDR declined to 939.94 tons on Friday down from 952 tons on Tuesday.

Direxion Shares Exchange Traded Fund Trust (NUGT) Gold

Data releases could spur or spook the bullion this week

Gold and the Direxion Shares Exchange Traded Fund Trust are in a very sensitive position in which the yellow metal could break out to new highs or break down to previous lows. This week is pregnant with a few critical data releases and the content of the economic data could either spur the bullion to new highs or spook investors to trigger a selloff.

On Thursday, the August retail sales data will be released and the content of the data will help investors draw inferences about the economic outlook. The retails sales data in July was down 0.3% across all categories expect in automobile sales. Investors’ faith in the economic recovery will be restored if the August retail sales data is impressive and investors will have fewer reasons to seek refuge in the bullion. However, if the August retail sales data turn out to be worse than expected, investors will seek refuge in the bullion and gold prices will rise this week.

On Friday, the market will be treated to data on the highly important Consumer Price Index data. Economists have expected the core CPI to increase by 0.2% in August and they expect inflation to increase by 0.1% in August up from the July readings.

Wall Street anti-gold wealth manager is buying bullion

Despite the apparent lackluster outlook for the bullion and the Direxion Shares Exchange Traded Fund Trust , gold bugs are still optimistic about the prospects of the yellow metal. However, more surprising is the fact that Richard Bernstein, an anti-gold Wall Street wealth manager is now buying the bullion for his clients.

Bernstein had never seen sense in buying or holding the bullion and he never bought the bullion during his 35-year on Wall Street – Bernstein was once a chief investment strategist for Merrill Lynch. More so, he used to rile bullion investors when he taught at New York University’s Stern School of Business where he often claims that gold is not much different from the wampum shell beads of American Indians.

However, Bernstein has had a rethink on his position on the yellow metal and he now considers the yellow metal a real asset. He says, gold is “a real asset that we ascribe some romantic value to, that kind of becomes a pseudo-currency… You buy real assets when inflation expectations are starting to go up.” Interestingly, Bernstein doesn’t consider himself a gold bug but he thinks that the bullion might provide a measure of stability when the next wave of volatility hits the market.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.