ProShares Ultra Silver (AGQ) experienced a sharp pre-market plunge of 12.25% on Friday, mirroring a significant downturn in the underlying silver market.
The leveraged ETF's decline tracked a steep drop in spot silver prices, which fell nearly 7% in recent trading. The sell-off in precious metals was part of a broader risk-off sentiment across global markets, driven by heightened inflation concerns and shifting expectations for U.S. monetary policy.
Market analysts point to rising oil prices, which have stoked fears of resurgent inflation, as a key factor pressuring non-yielding assets like silver. Furthermore, expectations have shifted dramatically, with markets now fully pricing out the chance of a Federal Reserve rate cut this year and leaning toward the possibility of a hike before year-end. This hawkish shift in policy outlook has weighed heavily on gold and silver, leading to the sharp decline reflected in AGQ's pre-market performance.
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