ProShares Ultra Silver (AGQ) surged 11.25% in pre-market trading on Monday, mirroring a broader rally in precious metals as investors sought safe-haven assets amid geopolitical uncertainties and expectations of Federal Reserve rate cuts.
The rally was fueled by gold breaking above the psychological milestone of $4,600 an ounce for the first time, with silver also hitting a record high. Analysts attributed the surge to heightened safe-haven demand due to unrest in Iran, where over 500 people have died in protests, and threats of U.S. military action. Additionally, weaker-than-expected U.S. employment data and Fed Chair Jerome Powell's remarks about political pressure to lower rates bolstered bets on monetary easing, further supporting non-yielding assets like silver.
"Geopolitical risks and rate-cut expectations are driving the bullish momentum in precious metals," said Kelvin Wong, a senior market analyst at OANDA. Central bank demand for gold and silver is also expected to grow as investors perceive them as lower-risk alternatives to the dollar.
Comments