On September 28, ProShares Ultra Gold declined 8.2% in regular trading, trading at $44.83/share, with turnover of $73.28 million. The sharp drop was driven by a broad sell-off in gold, as spot gold plunged over 3.5% and broke below the $4,200/oz level for the first time since August 5.
The decline was primarily triggered by intensifying expectations for further Fed rate hikes. Multiple Fed officials recently delivered hawkish remarks, pushing the CME-implied probability of an October 25bps rate hike to as high as 64.8%. The strengthening U.S. dollar and rising Treasury yields further pressured gold prices. Silver simultaneously tumbled over 4%, while gold mining stocks including Barrick Gold, Kinross Gold, and AngloGold Ashanti fell between 5% and 6.6%.
Markets this week are focused on core PCE inflation data and the non-farm payroll report, both of which will directly shape the Fed's subsequent rate hike trajectory and could determine gold's near-term direction.
ProShares Ultra Gold seeks daily investment results that correspond to two times the daily performance of gold bullion as measured by the LBMA Gold Price. The fund invests in financial instruments including swap agreements, futures contracts, and options rather than directly in physical commodities.
(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.)