Federal Reserve Note Boosts Demand for Direxion Shares Exchange Traded Fund Trust (NYSEARCA:NUGT)Author: Paul SheaLast Updated: March 12, 2020 Direxion Shares Exchange Traded Fund Trust opened strongly higher on Wednesday morning ahead of a statement from the Federal Reserve on the state of the US economy. The note will be the last issued by the central bank until September. Those looking for a more hawkish Fed reckon a rate rise may happen next month.The minutes of the Fed meeting, which are due to appear this afternoon, should offer a glimpse into the central bank’s decision making. A rate rise may damage the price of gold further. Many Wall Street banks, including Morgan Stanley, think the value of the metal will head below $1,000 in the months ahead.Buying gold on Fed movementThe coming report from the Fed may not be the major factor moving gold markets on Wednesday. China’s stock market crashed once again over night, and the country’s currency, the Yuan, has been allowed to fall in value multiple times in recent days.Chinese buyers may look to gold in order to protect their investments. That could be having a positive effect on the shares of gold miners, and in Direxion Shares Exchange Traded Fund Trust by extension.INTL FCStone analyst Edward Meirtodl Reuters that despite the pressure from China, the Fed was still on the minds of traders. He says “that gold will be under pressure” until the Fed reveals its rate rise decision. He reckons that the market will support the metal after the initial rate rise as traders expect Janet Yellen and her crew to leave rates at that level before raising them again. Direxion Shares Exchange Traded Fund Trust jumpsAt time of writing, just after 10 AM EDT, the Direxion Shares Exchange Traded Fund Trust was selling for $4.29, up 5.67 percent for the day so far. The ETF is supposed to multiply the returns of a group of gold miner shares by three times their daily movement. That makes it a very hard mover, and means that a lot of money can be lost, or gained, very quickly. Since the start of the year the ETF has lost more than 60 percent of its value. since it opened up it has lost about 99 percent of its value.When the minutes from the Fed arrive, the impact that China and other moves in the gold market on the ETF will have to be weighed against the rate rise outlook. The Fed has a habit of being direct in telling the market when it expects to make major decisions.That means the next rate rise, if it’s set to happen in September, will likely be evident in the release from Janet Yellen and the other members of the board later on today.