ProShares Ultra Silver (AGQ) surged 5.44% in pre-market trading as silver prices rallied amid heightened safe-haven demand. The precious metals market is benefiting from a combination of Federal Reserve turmoil and escalating Middle East tensions, which have driven investors towards assets like silver.
According to FXGT, the market is in a sensitive period with overlapping risks, including an unprecedented judicial investigation into Fed Chair Powell and rising geopolitical instability in Iran. These factors have significantly boosted demand for safe-haven assets, with silver prices holding firmly above $86. Additionally, Mhmarkets highlighted that the deteriorating situation in the Middle East and concerns over Fed independence are creating a favorable environment for precious metals, with silver poised for further gains.
Technical indicators also support the bullish sentiment, with silver's next target seen at $90. Analysts suggest that before the Fed's legal issues and Middle East tensions ease, the upward momentum in silver prices is likely to persist, making leveraged ETFs like AGQ attractive to traders.
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