Junior Miners Bear ETF (NYSE:JDST) Gains As Gold And Silver Fell
Direxion Daily Junior Gold Miners Index Bear 2X Shares (NYSE:JDST ) closed at 29.41 +2.87 (+10.81%) as precious metal prices got hit hard today and junior mining stocks saw red. (NYSE:JDST) made the NYSE top gainers list today.
Spot gold is currently trading at 4,141.30 USD +37.30 (+0.91%) after market close today. Spot silver is trading in the green currently, indicating today's sell off has subsided, trading at 55.98 USD +0.46 (+0.82%).
AdvertisementIn today's volatile trading session, precious metals came under renewed pressure this week as a hotter-than-expected U.S. inflation print reinforced expectations for further Federal Reserve rate hikes.
Spot gold prices fell 1.5% toward the $4,090-$4,140 range while silver led the retreat, testing levels near $56-$59, as speculative long positions were unwound amid rising real rates.
With this sentiment junior mining stocks declined even more than the metals themselves, reflecting their elevated operational and financial leverage: fixed costs mean margins compress faster on lower realized prices, while higher funding costs and risk-off sentiment weigh on exploration-stage and development companies that lack the cash-flow cushions of senior producers. With juniors typically non-yielding and more dependent on speculative capital, rising bond yields have amplified the sell-off, leaving valuations compressed relative to still-resilient underlying commodity prices and creating a classic higher-beta reaction across the junior gold and silver space.
But smart money is still very bullish long term on gold and silver with global debt being a big factor.
Research mining stocks at the Investorideas free stock directory
at Investorideas with host Cali Van Zant for the latest mining stock news and insightful interviews with top industry expertsAxel Merk: What Warsh's Fed Approach Means for Gold, & Gold Stocks
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