In the aftermath of the US elections, precious metals plunged Wednesday through Friday. As I write this – before market open on Monday – gold looks to be trying to find support at 1210 per oz. Which is translating to about 116 in GLD, our unleveraged trading ETF for gold.
NUGT fared worse. NUGT went from 15.80 early Weds to close at 8.28 on Friday. That’s a 48% loss. In just 3 days.
We know NUGT tracks the bigger gold mining stocks. And that the miners are more volatile than gold itself. So a bigger drop in the miners than in gold isn’t suprising by itself.
What was surprising was the size of the drop. After all, gold dropped from 1340 to 1220, or about 9%. As we know from 2nd grade math, 48% is much bigger than 9%.
For the overall trading picture we like to start with GLD. You’d have to be a bit dull not to notice we’re well below the 118 lowest-support we pointed out several times previously. 118 to 116 doesn’t seem like much. After all, what’s 2 points on a hundred-plus point equity?
