Direxion Daily Gold Miners Index Bear 2X Shares

DUST

Market cap $42.4M

While artificial intelligence may dominate headlines, it's the gold market that deserves everyone's attention — at least that's the argument forwarded by renowned macro investor Ray Dalio. With the world order shifting and debt assets' risk profile rising, gold has emerged as the superior store of wealth.

While innovative sectors such as artificial intelligence consistently grab headlines, few industries have been as holistically profitable as gold. Heading into the tail end of summer, the yellow metal was already a star asset, trading around $3,400.

After a tense showdown following President Donald Trump's decision to use U.S. forces to bomb key Iranian nuclear sites, another twist in the geopolitical narrative shines the spotlight on gold. When Israel initially launched an attack against Iran, the precious metals market soared as investors sought a reliable safe haven.

Let's delve into the ETF world following the 90-day U.S.-China trade deal.

Gold prices on a roller-coaster ride as trade fears lift safe-haven demand, while easing tensions and rising risk appetite affect the metal.

The Direxion Daily Gold Miners Index Bear 2X Shares ETF is designed for short-term traders to exploit gold price pullbacks, but not suitable for long-term bearish bets. The recent pullback in gold prices may be partly attributable to new production coming online from Artemis Gold's Blackwater property and Sierra Madre's Coloso project. Despite short-term pullbacks, I remain bullish on gold long-term and rate DUST as a Hold, suitable only for risk-seeking, short-term traders.

Gold's rise to a 30% year-to-date gain may not have been easily predicted ahead of 2024. But at some point, it will dip.

Top Performing Levered/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

Direxion Daily Gold Miners Index Bear 2X Shares ETF offers leveraged inverse exposure to gold miners, aiming for -200% daily returns of the NYSE Arca Gold Miners Index. The DUST ETF uses swaps and futures contracts instead of owning gold mining stocks, making it suitable for short-term bets against gold miners. High fees and daily resets make DUST risky for long-term holds, but it can be a useful hedge or speculative tool for tactical traders.

Following market uncertainty in August, investors may feel compelled to reassess their portfolio allocations. With potential rate cuts from the Federal Reserve on the horizon, now may be a good time to diversify your portfolio and seek growth strategies.