Direxion Daily Gold Miners Bull 2X (NUGT)

[CowBoE]

Simple. US dollar is standard currency for trading commodities, including gold.

And many commodities, like precious metals and oil, tend to trade inverse to USD.

World economy is getting weaker but US economy is getting stronger,
so dollar has been rising in virtually straight line for nearly 18 months
and this is pattern is expected to continue into good part of 2015.

Add to that, US is expected to raise interest rates, while other countries are fumbling with lowering rates or doing more QE stimulus plans, which
further attracts USD over other currencies.

In fact many countries like Japan and Europe are trying to devalue
their currency in hopes of improving their export business profits.

The only things that can spike gold at this point are:
1) Major global economic crisis
2) Major geopolitical crisis
3) Major Ebola like crisis
4) Massive increase in gold demand
5) Or...strong economic recovery in Europe and Asia, which will happen eventually but that's about 12 to 24 months out in my opinion.

So gold is likely going to test the lows in coming months,
I think it will hit $1,000 or lower before finding THE bottom.

We haven't seen THE capitulation like drop with super massive volume but that's coming, and that's when you want to go ALL IN.