Stock Track | ProShares Ultra Silver Plummets 17.70% Intraday as Silver Prices Crash on Rising Yields and Hawkish Fed Shift

Stock Track05-15 22:22

The ProShares Ultra Silver ETF (AGQ) plummeted 17.70% during Friday's intraday session. The leveraged exchange-traded fund, which seeks to deliver twice the daily performance of silver, experienced an amplified decline mirroring a severe sell-off in the underlying silver market.

The sharp drop in AGQ was driven by a significant downturn in spot silver prices, which fell nearly 7%. The precious metals sector faced intense pressure from a combination of rising U.S. Treasury yields, a strengthening U.S. dollar, and heightened inflation concerns fueled by elevated oil prices due to tensions in the Strait of Hormuz. These factors have dramatically shifted market expectations for U.S. monetary policy, with traders now fully pricing out Federal Reserve rate cuts for this year and leaning toward the possibility of a hike.

This hawkish repricing has weighed heavily on non-yielding assets like silver. The sell-off was part of a broader risk-off sentiment across global markets, contributing to the leveraged ETF's severe underperformance relative to the spot metal's decline.

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