ProShares Ultra Silver (AGQ) experienced a sharp pre-market plunge of 22.29% on Friday, reflecting extreme volatility in the leveraged silver tracking fund.
The dramatic drop followed reports that the Trump administration plans to nominate Kevin Warsh for Federal Reserve Chairman. Warsh, known as an inflation hawk, is expected to pursue tighter monetary policies, which boosted the U.S. dollar and increased the cost of dollar-denominated commodities like silver for most international buyers.
Silver prices had recently surged to record highs, climbing 48% year-to-date, making the metal particularly vulnerable to profit-taking. The combination of dollar strength and investors locking in gains after the parabolic rally triggered a broad sell-off across precious metals, with silver suffering some of the most severe losses during the session.
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