Direxion Daily Gold Miners Index Bull 2X Shares (NYSE:NUGT) gapped down almost 6% lower on Friday, when the ETF ran into a group of buyers who knocked it down more than 4% from the open.

Spot gold was retracing lower on Friday, possibly printing a higher low at just under $2,000, which aligns with the 21-day exponential moving average.

Investors are now worried the economy is on shaky ground amid the debt ceiling crisis, which the White House has warned could tank the stock market and throw the U.S. into a recession unless a solution is agreed to.

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In contrast, NUGT, which usually trades in tandem with spot gold, was showing bullish momentum, likely for technical analysis reasons, because the ETF is trading in an uptrend and is in need of a higher low.

NUGT is a double-leveraged fund that is designed to outperform the NYSE Arca Gold Miners Index by 200%. The ETF tracks several gold and silver mining companies, with Newmont Corporation (NYSE:NEM), Barrick Gold Corp (NYSE:GOLD) and Franco-Nevada Corp (NYSE:FNV) making up 26.62% of its holdings.

It should be noted that leveraged ETFs are meant to be used as a trading vehicle by experienced traders, as opposed to long-term investments. Leveraged ETFs should never be used by an investor with a buy-and-hold strategy or those who have low-risk appetites.

For traders wanting to play the gold mining index bearishly, Direxion offers Direxion Daily Gold Miners Index Bear 2X Shares (NYSE:DUST).

The NUGT Chart: NUGT reversed course into an uptrend on April 27 and has printed a higher high and a higher low to confirm an uptrend. The higher low was formed on May 1 at $44.11 and the higher high was created at the $51.89 mark on Thursday. On Friday, NUGT fell to the $47 mark, where bullish traders came in and bought the dip, causing the ETF to spike higher.

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