ProShares Ultra Silver (AGQ), the leveraged ETF tracking silver prices, surged 5.70% during intraday trading. The fund, which seeks to deliver twice the daily performance of silver bullion, experienced significant buying interest.
The sharp rise appears to be driven by a bullish analyst report from Deutsche Bank. According to the bank's Head of FX and Commodity Research, Thu Lan Nguyen, Deutsche Bank has raised its price forecasts for both gold and silver. The bank expects the Federal Reserve to cut interest rates in the second half of the year, which could push gold prices back above $5,000 per ounce. Higher gold prices are projected to lift silver to $90 per ounce.
Despite acknowledging that silver's current momentum is driven more by gold's performance than economic fundamentals, Deutsche Bank remains optimistic about the precious metal. The analyst noted that as long as gold remains overvalued and well-supported as a safe-haven asset, silver prices are likely to benefit, providing a positive catalyst for silver-linked investments like AGQ.
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