ProShares Ultra Silver (AGQ) experienced a significant decline of 8.54% during intraday trading on Wednesday, reflecting a sharp downturn in the leveraged silver ETF.
The movement followed the release of key U.S. economic data, with the Consumer Price Index (CPI) showing a 2.4% year-over-year increase in February. The core CPI, excluding volatile food and energy prices, rose 2.5% compared to the same period last year. This data heightened concerns about persistent inflationary pressures in the U.S. economy.
Analysts noted that despite recent weak non-farm payroll data, markets now anticipate the Federal Reserve may delay another interest rate cut until July. Additionally, risks of a rebound in inflationary pressures have emerged due to the recent surge in international oil prices and ongoing geopolitical tensions in the Middle East, contributing to the sell-off in precious metals including silver.
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