The MicroSectors Gold Miners 3x Leveraged ETN (GDXU) experienced a sharp decline intraday, plummeting 5.29% during Friday's trading session. The leveraged exchange-traded note, which aims to deliver three times the daily performance of an index of gold mining companies, saw significant selling pressure as sector headwinds emerged.

The movement appears linked to concerns in the gold mining sector following AngloGold Ashanti's earnings release, which revealed strong 2025 results but projected substantial cost increases for 2026. The company forecast total cash costs to rise approximately 11% year-over-year, potentially squeezing margins if gold prices don't continue their upward trajectory. Concurrently, gold prices faced technical resistance and dollar strength, limiting the metal's upside potential and creating a challenging environment for mining companies.

As a triple-leveraged product, GDXU amplifies both gains and losses in the underlying gold mining sector. The combination of rising operational costs for miners and constrained gold price appreciation created a negative sentiment that translated into amplified declines for the leveraged ETN during the trading session.