On May 27, ProShares Ultra Silver ETF (AGQ) fell 8.33% in pre-market trading, trading at $108.93/share, with trading volume of $15.14 million.
On the news front, UBS recently cut its silver price forecast from $100 to $85, citing weakening silver investment demand, declining industrial consumption, and increasing mine supply that would significantly narrow the supply deficit. Spot silver fell below $75 for the second consecutive day, compounding bearish sentiment.
The dual headwinds of the investment bank downgrade and geopolitical uncertainty from the US-Iran conflict continued to suppress silver prices, while the fund's 2x leverage structure amplified the downside move in its share price relative to the underlying metal.
The fund seeks to meet its investment objective by investing in Financial Instruments including swap agreements, futures contracts, forward contracts, and option contracts based on its benchmark. It does not invest directly in any commodity.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)