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Gold ETFs Up on Tapering Fears; Higher Physical Demand

  +Follow August 20, 2013 10:02AM
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While gold is still down for the year, a perfect storm of tangible events and intangible fears are causing the precious metal to regain some of the value it has lost in the year.

The widespread assumption concerning the US federal stimulus program is that it will be “tapered off” from $85 billion a month to $65 billion. When and if this happens, demand will increase and domestic investors will seek to stash their wealth in the yellow metal.

Physical demand abroad is also driving up the price of gold. While analysts had been concerned that China’s meteoric rise could soon wane, or even start crashing, the country has reported better than expected trade numbers, keeping demand for metals up.

India, which has been adjusting to widespread corporate reform and a fast devaluing rupee, is preparing to enter a traditional gold-buying season which should prop up demand. The Hindi festival Raksha Bandhan began on Aug. 20, usually a healthy time for gold buying in the country.

On Aug. 19 gold hit a two month high, largely correcting a 23 percent drop experienced in the second quarter of 2013.

Gold ETFs fared well on gold’s surge. Market Vectors Gold Miners ETF ($GDX) gained 3.53 percent to hit $30.26 a share. PowerShares Global Gold and Precious Metals ($PSAU) gained 3.42 percent to hit $24.48 a share.

On Aug. 20 the New York-based ETF sponsor Direxion reverse split several of its ETFs , including one of the most popular gold mining ETFs, Direxion Daily Gold Miner Bull 3x Shares ($NUGT). The 10 to 1 reverse split raised the price of NUGT from $8.70 to $87.70 a share prior to trading. The ETF gained an additional 10.06 percent on the day to hit $96.34 a share.

Gold is  up .50 percent to hit $1,372.60 an ounce.

(image courtesy of Flickr)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for gdx
Ken
22 Oct 14 18:30:12
$UUP Looks like a big move coming for the #Dollar $GDX $GLD $GDXJ #gold http://t.co/P2uqRDGiZC
Stephen s
22 Oct 14 18:26:39
RT @IHNewsDesk: $HPNN P/E Ratio Click Here: Also See: $SQQQ $ECOP $IYT $GDX ~
Paul Stiles
22 Oct 14 18:09:50
$gdx hasn't bounced in months and is going to break down
Langan Stocks
22 Oct 14 18:08:04
$IDGC Quotes Click Here: http://t.co/WkZsClfdzF Also See: $SSO $SIMH $SSYS $GDX ~
IH News Desk
22 Oct 14 17:58:17
$IBIO Day Low Click Here: http://t.co/QbLaH1FtID Also See: $YELP $SBUX $GDX $ERX ~
TV_Trading Ideas
22 Oct 14 17:46:15
Watch for free fall. $18 is next $GDX http://t.co/UZBJ2QKp8T
IH News Desk
22 Oct 14 17:45:29
$HPNN P/E Ratio Click Here: Also See: $SQQQ $ECOP $IYT $GDX ~
Quantheta
22 Oct 14 17:00:02
#SENTISHIFTDOWN $MSFT $PCLN $BAC $GDX $TSLA $GPRO $GOLD $IBIO $GOOG $T #quantheta
Quantheta
22 Oct 14 16:00:02
#SENTISHIFTDOWN $MSFT $PCLN $TSLA $GDX $BAC $GPRO $GOLD $UGAZ $IBIO $GOOG #quantheta
Woll Street
22 Oct 14 15:55:43
The chart is inverse $GDX
IH News Desk
22 Oct 14 15:38:17
$EPAZD Ex-Div Date Click Here: http://t.co/NKHeupQEBs Also See: $GILD $FREE $DE $GDX ~
Stock Relay
22 Oct 14 15:31:22
$AMBA Change Click Here: http://t.co/GLGEmATmUo Also See: $GDX $MO $ACHN $CENX ~
Sufiy
22 Oct 14 15:25:02
M&A Watch: Los Azules #Copper - Acquisitions signal a turning market for #miners. $MUX $TNR.v $GDX $FCX $BHP http://t.co/7tDPJDir3u
Prices Gold
22 Oct 14 15:16:12
#Gold Miners ETF GDX - last: $20.4399 @ 4:00pm EST 10/22/2014 http://t.co/eOIHCzJMNf $GDX
GoldMarketNews
22 Oct 14 15:16:11
#Gold Miners ETF GDX - last: $20.4399 @ 4:00pm EST 10/22/2014 http://t.co/hQISZdhGIq $GDX
Stockaholics
22 Oct 14 14:52:35
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $MDMT $COHO $GDX
Edward Gofsky
22 Oct 14 14:51:24
$DUST 3x Bear ETF gold stocks. Bullish {Cup+Handle} setup. $GLD $GDX $SLV $HGD.TO #stocks #markets http://t.co/cnz5jEBgFw
Barry Scott
22 Oct 14 14:25:40
One's a teenager again the other single, $NUGT -9% $JNUG -15.7%, daily adjustment & volatility erode 3x ETFs, $GDX better aft 10/28 $GLD
OxoTHuk
22 Oct 14 14:23:59
RT @paulwoll: If $GDX breaks down measured move is in low teens.
Stock Relay
22 Oct 14 14:22:25
$AA Change Click Here: http://t.co/B0bTnqFrnm Also See: $GOOG $GDX $LUV $RSX ~
OptionsGeek
22 Oct 14 14:08:55
RT @paulwoll: If $GDX breaks down measured move is in low teens.
Ani Anirudhan
22 Oct 14 14:07:51
RT @paulwoll: If $GDX breaks down measured move is in low teens.
Timothy Parker
22 Oct 14 14:06:54
RT @paulwoll: If $GDX breaks down measured move is in low teens.
Woll Street
22 Oct 14 14:05:03
If $GDX breaks down measured move is in low teens.
Quantheta
22 Oct 14 14:00:02
#SENTISHIFTDOWN $MSFT $PCLN $TSLA $GPRO $GOOG $GDX $GOLD $IBIO $PLUG $UGAZ #quantheta
BrutusMaximus
22 Oct 14 13:42:54
$GDX has not been this cheap relative to $GLD in at least 20 years
John Constantine
22 Oct 14 12:58:51
$JNUG $GDX tested low on 1/4 volume today daily - Tom Obrien #TFNN
John Constantine
22 Oct 14 12:55:40
$SI_F 17.13 $GC_F 1242 - Miners ZERO - $JNUG $GDXJ $GDX $HUI $XAU $XAUUSD
Helmsman
22 Oct 14 12:48:58
Check my tweets from yesterday to see when I entered my $GDX puts. Thanks @autumnalcity87 !!
Helmsman
22 Oct 14 12:46:13
you have to let it do it's thing. You can't let the size of profits drive your decision making. All logic says this is the beginning $GDX
Jack
22 Oct 14 12:23:24
They are dumping gold. $GLD $GDX $DUST
Barbara Kollmeyer
22 Oct 14 12:15:32
RT @codywillard: Market is saying that the $GDX $GDXJ gold miners aren't profitable enough below $1300/oz to be a good trade/in... http://t…
GoldMarketNews
22 Oct 14 12:15:07
#Gold Miners ETF GDX - last: $20.595 @ 2:59pm EST 10/22/2014 http://t.co/NoTDwTJXOX $GDX
Prices Gold
22 Oct 14 12:15:05
#Gold Miners ETF GDX - last: $20.595 @ 2:59pm EST 10/22/2014 http://t.co/GW7L2ueAUH $GDX
Joshua Payne
22 Oct 14 12:04:18
RT @codywillard: Market is saying that the $GDX $GDXJ gold miners aren't profitable enough below $1300/oz to be a good trade/in... http://t…
Leilani Pips
22 Oct 14 12:03:31
RT @codywillard: Market is saying that the $GDX $GDXJ gold miners aren't profitable enough below $1300/oz to be a good trade/in... http://t…
Cody Willard
22 Oct 14 12:02:47
Market is saying that the $GDX $GDXJ gold miners aren't profitable enough below $1300/oz to be a good trade/in... http://t.co/C15LuZh6zM
Quantheta
22 Oct 14 12:00:02
#SENTISHIFTDOWN $MSFT $PCLN $GPRO $TSLA $GOOG $UGAZ $IBIO $GOLD $PLUG $GDX #quantheta
Thu Real Matt
22 Oct 14 11:38:03
$GDX flirting with 20 demand (for now), call me crazy go ahead but be careful long $NUGT $DUST $GLD http://t.co/BtURmxgOIb
TradingView
22 Oct 14 11:30:02
$GDX - GDX update - 10/21/2014 - https://t.co/10xw7P6nR3
NelsNYC
22 Oct 14 11:22:42
@chart_freak $GDX $GDXJ devastated.... no love there
Grant Beasley
22 Oct 14 11:21:01
$GDX gone. Behaved like a PIG. v. small ding
Investors Hangout
22 Oct 14 11:20:42
danrocks: $HYG Hitting Buzz $XLE $EXK $SWKS $XLK $GDX http://t.co/qtLWDCE1J4
Investors Hangout
22 Oct 14 11:20:42
danrocks: $HYG Hitting Buzz $XLE $EXK $SWKS $XLK $GDX http://t.co/9AV55MfRjy
Creditspread23
22 Oct 14 11:16:41
RT @paulwoll: $GDXJ $GDX are treacherous still..
Stock Forums
22 Oct 14 11:13:05
$BRK/B Quotes Click Here: http://t.co/oBz7PKh69e Also See: $GILD $VIPS $EWJ $GDX ~
★★★★★
22 Oct 14 11:09:41
@abdulnasser15 اي والله انا ماسك $GDX كول مارس نايم ينتظر كسر معدلات نفسيه
Gary Manzano
22 Oct 14 11:01:52
@canuck2usa $GDX looking really weak..
Stockaholics
22 Oct 14 11:00:13
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $MDMT $COHO $GDX
danrocks
22 Oct 14 10:57:14
$HYG Hitting Buzz $XLE $EXK $SWKS $XLK $GDX http://t.co/RZaErZJqO5
				
				
  +Follow August 20, 2013 10:02AM
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