The MicroSectors Gold Miners 3x Leveraged ETN (GDXU) plummeted 5.65% during Friday's trading session. The exchange-traded note, which aims to deliver three times the daily performance of an index of gold miners, moved sharply lower as the underlying gold sector faced significant selling pressure.

The decline in GDXU is primarily attributed to a substantial drop in gold prices, driven by a stronger U.S. dollar index and rising U.S. Treasury yields. Market participants grew concerned that persistent global inflation could weaken economic prospects and reduce demand for the precious metal. Furthermore, reduced expectations for Federal Reserve interest rate cuts have increased the opportunity cost of holding non-yielding assets like gold, prompting capital to flow out of the sector.

Adding to the pressure, the market's focus has shifted to upcoming U.S. inflation data, particularly the Personal Consumption Expenditures (PCE) price index. Should the data indicate stubborn inflation, expectations for "higher rates for longer" could intensify, potentially increasing further downward pressure on gold and related assets like mining stocks. The leveraged structure of GDXU amplified these downward movements in the underlying gold mining index.