DUST sinks after Newmont and Agnico Eagle post strong Q2 results, driving a 7% rally in the GDX ETF.
The Direxion Daily Gold Miners Index Bear 2X Shares (DUST) tumbled 13% Friday as the VanEck Gold Miners ETF (GDX) surged 7% on robust Q2 earnings from major miners. Newmont reported a record $2.2 billion in Q2 free cash flow, while Agnico Eagle posted a 35% revenue increase, both beating EPS estimates.
Gold miners have rallied for weeks, fueled by gold prices near record highs and strong earnings. Newmont and Agnico Eagle reported on July 23 and July 30, respectively, with realized gold prices exceeding $4,400 per ounce. DUST, designed to deliver twice the inverse daily performance of the NYSE Arca Gold Miners Index, has suffered from the sector’s momentum.
The fund’s structure, which resets leverage daily, makes it a short-term tactical tool, amplifying losses during prolonged rallies.