Movement Alert|ProShares Ultra Gold Falls 8.2% in Regular Trading, Gold Prices Plunge Below $4,200 as Fed Rate Hike Expectations Intensify

Market Focus
Sep 28

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.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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