1. Gold is trading around $3,400 with a 10% recent increase. 2. Investors are attracted to mining due to supply crunch challenges. 3. Federal Reserve may cut interest rates, potentially benefiting gold. 4. DUST ETF has lost 80% YTD; recent gain indicates possible reversal. 5. Citigroup warns of potential gold price correction to $2,500-$2,700.
DUST has lost significant value and the bullish sentiment towards gold persists, potentially suppressing DUST's recovery. Historically, severe downtrends in inverse ETFs can continue amid strong uptrends in underlying assets.
With ongoing discussions about gold's volatility and potential corrections highlighted, this directly affects DUST's role as a hedge against gold performance.
The immediate technical setup of DUST and recent trading volumes suggest potential for short-term volatility rather than long-term recovery.