The MicroSectors Gold Miners 3x Leveraged ETN (GDXU) plummeted 17.61% during Tuesday's intraday session. The sharp decline in the leveraged exchange-traded note, which aims to deliver three times the daily performance of an index of gold mining companies, reflects intense selling pressure in the gold sector.

The movement was driven by a significant downturn in the underlying gold market. Spot gold prices fell, pressured by a combination of easing geopolitical tensions and reduced market liquidity. Key factors included signals of diplomatic engagement in U.S.-Iran negotiations, which diminished the safe-haven premium for gold, and a stronger U.S. dollar that made dollar-denominated bullion more expensive for holders of other currencies.

Furthermore, trading conditions were notably thin due to the U.S. Presidents' Day holiday on Monday and the ongoing Lunar New Year holiday across major Asian financial centers, contributing to heightened volatility and exaggerated price moves in leveraged products like GDXU. Technical analysis also pointed to gold failing to sustain rebounds and facing bearish pressure at key resistance levels, confirming a short-term corrective phase for the precious metal.