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Gold's Selloff Accelerates, But Still One Of 2016's Best Performers

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Gold's Selloff Accelerates, But Still One Of 2016's Best Performers

Gold and gold stocks continued their losing streak on Tuesday morning, with the SPDR Gold Trust (ETF) (NYSE: GLD) down another 2.1 percent. Tuesday’s decline marks the seventh consecutive decline for the GLD and has the ETF set up for its lowest closing price since June.

Strength in the U.S. dollar coupled with positive September manufacturing data from the Institute for Supply Management on Monday is likely driving Tuesday’s decline.

In the past seven sessions, GLD has declined 4.0 percent, giving up a large chunk of its 2016 gains. Other gold stocks and ETFs have been hit even harder.

The Market Vectors Gold Miners ETF (NYSE: GDX) and the Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) are both down more than 9 percent in the past seven sessions. Not surprisingly, the 3x levered Direxion Shares Exchange Traded Fund Trust (NYSE: JNUG) is down 28.2 percent during the seven-day stretch. Inverse gold ETF Direction Shares Exchange Traded Fund Trust (NYSE: DUST) is up 30 percent.

Related Link: OPEC Deal Indicates Saudi Arabia Is Abandoning Market Share Strategy

Despite the selloff, Gold remains one of the best-performing investments of 2016. GLD is up 20.8 percent this year as investors look for safe investment options among pricy stocks and historically low-yielding bonds.

 

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