Gold rallied nearly 2% on Tuesday (21 July), trading around $4,080 following two consecutive weeks of losses as investors bought into the dip.
Gold held its gains as traders weighed higher energy prices against softer US economic data, with the key US$4,000 psychological level continuing to provide technical support.
Tracking the move, $SPDR Gold ETF(GLD)$ rose 1.96%, lifting the $GLD US 5xLongSG280609(GLDW.SI)$ by close to 10%, with the $GLD US 5xShortSG280609(GOSW.SI)$ declining a similar magnitude
Silver staged an even stronger rebound, jumping more than 4% in its largest advance in over five weeks. $iShares Silver Trust(SLV)$ rose 4.1%, as silver continued to trade around the US$60 level.
Correspondingly, the $SLV 3xLongSG280609(SLSW.SI)$ rose more than 12%, while the SLV 3x Short DLC sank a similar magnitude.
Institutional demand and renewed buying interest could provide further catalysts for precious metals. However, a decisive break below their respective support levels may reinforce the prevailing downtrends.
Investors who view the rebound as the start of a broader rally may consider Long DLCs for leveraged exposure to gold and silver.
Conversely, investors anticipating renewed weakness may consider Short DLCs for inverse exposure to benefit from potential price declines.
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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