Direxion Daily Gold Miners Bull 2X (NUGT)

[Citrati]

Thought this was interesting from KWN.

"When analysts speak about gold and the dollar, they typically have pointed to how the dollar affects gold: a decline in the dollar leads to a rise in gold, a rise in the dollar leads to a decline in gold. But that is yesterday’s world. Today, rather than playing slave to the dollar, gold, now largely detached from the dollar, follows and sometimes leads the Chinese stock market. In other words, the Chinese stock market has become gold’s new touchstone.

Moreover, for the past 18 months, as mentioned above, peaks and valleys in Chinese stocks have led U.S. stocks. It is interesting how, with very few exceptions, even on a day-to-day basis the direction of Chinese stocks determines the initial action in the U.S. market. And more often than not, the U.S. market will close in the same direction as Chinese stocks. Remember the Chinese market finishes trading before U.S. markets open.

That gold so closely follows and sometimes anticipates the peaks and valleys in the Chinese stock market is strong evidence the gold market recognizes the ascension of China and is already betting that gold will play a critical role in replacing the dollar, part of China’s plan since the late 1970s when the Chinese gold army was created. "