Gold Drops on Renewed Inflation Concerns, 5x Short DLC Gains +16%
Gold traded lower on Monday (31 August), as renewed inflation concerns, developments surrounding U.S. strikes on Iran and Kevin Warsh’s Jackson Hole speech weighed on market sentiment.
Spot gold was hovering around US$4,400 as of 12pm Singapore time on Monday, after pulling back from last week's high of US$4,696.
Tracking the spot price, $SPDR Gold ETF(GLD)$ fell about 3.2% during Friday's trading session. Amplifying the return, GLD 5x Short DLC (GOSW) rose around 16%, while GLD 5x Long DLC (GLDW) declined by a similar magnitude.
Silver also came under pressure, with $iShares Silver Trust(SLV)$ declining 4.4%. Correspondingly, the SLV 3x Short DLC (SVSW) rose more than 12%, while the SLV 3x Long DLC (SLSW) declined by a similar magnitude.
Technology stocks also saw increased volatility following $NVIDIA(NVDA)$ ’s earnings release last week 26 August. Nvidia initially rose more than 8.7% on Thursday before falling 4.5% on Friday.
On the DLCs, the Nvidia 5x Long DLC (KJHW) gained over 40% on Thursday before giving back more than half the gains to close the week while the Nvidia 5x Short DLC (VU6W) fell by over 40% before making a partial recovery on Friday.
With 5x U.S. Stock DLCs now available on the Magnificent 7, investors can gain 3x or 5x leveraged and inverse exposure to express short-term bullish or bearish views on leading U.S. stocks.
View the full list of DLCs on dlc.socgen.com.
This advertisement has not been reviewed by the Monetary Authority of Singapore. This advertisement is distributed by Société Générale, Singapore Branch. This advertisement does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.
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