With a partial government shutdown looking very likely, the price of gold has been soaring recently. Two top-performing ETFs-Direxion Daily Junior Gold Miners Bull 2X (JNUG) and the Direxion Daily Gold Miners Bull 2X (NUGT)—give investors a convenient way to profit from this trend.
And although Congress may find a way relatively soon to end the shutdown, several other factors that have pushed gold much higher over much longer periods are unlikely to dissipate in the near-to-medium term. Among these positive catalysts are the weakening U.S. dollar, high government debt globally, the sanctions imposed by the U.S. against Russia, and elevated tensions between America and its allies.
In the month that ended on Jan. 26, JNUG jumped 41%, while it advanced 150% in the three months that ended on that date. It soared 696% in the preceding year. Barchart’s Technical Opinion rates it as a “Strong Buy.”
In comparison, in the month that ended on Jan. 26, NUGT jumped 39% and advanced 132% in the previous three months. It soared 588% in the preceding year. Barchart’s Technical Opinion also rates it as a “Strong Buy.”
Another shutdown was always on the table, as there were unresolved issues after the last shutdown concluded.
However, many of those concerns have been overshadowed by current events in Minnesota. Senators from both parties are feeling the pressure from their constituents about the conduct of Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) agents in Minnesota. On Jan. 7, an ICE agent killed Renée Good, and agents from CBP killed Alex Pretti on Jan. 24. These two high-profile incidents come after numerous other reports of excessive force when dealing with peaceful protestors.
A growing number of Democratic lawmakers are refusing to support a six-bill funding law that includes appropriations for ICE. The Democrats are demanding that new restrictions on ICE be placed in the legislation, while Republicans counter that President Donald Trump should instead make changes to ICE’s procedures. The spending plan can’t pass without Democratic votes, and a partial shutdown will begin on Saturday unless senators make a bipartisan deal.
