Proshares Ultrashort Silver (ZSL) experienced a significant pre-market plunge of 8.51%. This inverse exchange-traded fund, which moves opposite to the price of silver, fell sharply as market sentiment turned bullish on the precious metal.
The decline follows a detailed analysis by prominent analyst Hao Hong, who presented a bullish outlook for silver prices. Hong argued that silver has not reached its peak and has significant upside potential, noting that "$80 per ounce is likely not the ceiling" for the metal. He pointed to improving global liquidity conditions and the likelihood of continued Federal Reserve rate cuts as factors supporting precious metal prices.
As an inverse ETF, ZSL typically declines when silver prices rise. Hong's analysis, which suggests silver will continue its upward trajectory, directly impacts expectations for this financial instrument. The analyst's view that "silver's rally is clearly not over" contributed to negative sentiment toward the ultrashort silver position during pre-market trading.
Comments