ProShares Ultra Silver (AGQ) surged 15.34% during Monday's intraday trading, mirroring a broad rally in silver and precious metals ETFs. Spot silver prices hit a record high of $84.42 per ounce, up 5.56%, as investors flocked to safe-haven assets amid escalating geopolitical risks.
The surge was fueled by heightened tensions in Iran, where over 500 protest-related deaths were reported, and threats of U.S. military action. Concurrently, Federal Reserve Chair Jerome Powell's remarks about political pressure to cut rates weakened the dollar, boosting non-yielding assets like silver. Analysts also cited expectations of at least two Fed rate cuts this year as a key driver.
"Geopolitical risks and rate-cut expectations are creating a perfect storm for silver," said Kelvin Wong of OANDA. Central banks are increasingly viewing precious metals as a lower-risk alternative to the dollar, further supporting AGQ's leveraged exposure to silver's rally.
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