Triple-Leveraged Silver ETF Slides 13% in a Week as Fed’s Inflation Warning Reshapes Rate Outlook
Published on 07/11/2026 at 15:55 | Redaktion boerse-global.de
The WisdomTree Silver 3x Daily Leveraged ETF ended Friday at $7.46, capping a bruising five-day stretch that wiped out 12.66% of its value. The single-session loss of 2.69% was merely the latest leg in a broader downturn that has now erased 26.79% over the past month, underscoring the ferocity with which leveraged products amplify any headwind in the underlying metal.
The catalyst came from Washington. The Federal Reserve released its semiannual monetary policy report on July 10, warning that inflation continues to run at roughly double the central bank’s 2% target as measured by the PCE index. The Fed attributed the persistent price pressures to a trio of factors: fresh tariffs, rising energy costs linked to tensions with Iran, and a surge in capital spending on artificial intelligence. According to one estimate cited in the report, AI-related outlays by major technology companies could exceed $800 billion in 2026 and potentially reach $1.1 trillion by 2027.
Although the Fed has held its benchmark rate steady in the 3.50%–3.75% range since December 2025, the inflation data have shifted market expectations sharply. Fed-fund futures now price in a 65% to 69% probability of a rate hike at the September meeting, according to CME FedWatch data. For a zero-yielding asset like silver, rising rates are a direct headwind — and for a triple-leveraged instrument, the effect is magnified.
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The silver spot market reflected the conflicting pressures this week. The price hovered around $60 per ounce into the weekend, down from recent highs but still above key support. A breakdown in the ceasefire with Iran sent oil prices up 5%, reviving geopolitical risk premiums. Yet those same inflationary fears reinforced the case for tighter policy, effectively capping any safe-haven bid in precious metals. In India, silver futures for September delivery declined at the Multi Commodity Exchange, while analysts pointed to a technical support zone near $57 and resistance at $64.20.
Despite the sell-off, some corners of the silver derivative market remain active. Ondo Finance launched a perpetual futures platform for tokenized assets this week, including silver, offering leverage of up to 20 times. At the same time, traditional mining stocks are feeling the pinch. HC Wainwright reaffirmed its “Buy” rating on First Majestic Silver but slashed the price target to $26.00 from $30.75, while the shares traded around $17.14.
The leveraged ETF’s technicals suggest the sell-off may be nearing exhaustion. The 14-day relative strength index stands at 35.8, inching toward the oversold threshold of 30 but not yet crossing it. The annualized 30-day volatility has surged to 157.47%, meaning even minor swings in the silver price now produce violent moves in the fund. Historical corrections in silver after strong rallies have often ranged from 22% to 30%, putting the current drawdown within a typical retracement.
All eyes now turn to Capitol Hill. Fed Chair Kevin Warsh is scheduled to testify before Congress on July 14 and 15 — his first major public appearance since taking the role. His remarks on the Federal Open Market Committee’s “resolute” stance to anchor inflation expectations will likely determine the near-term direction for both silver and its leveraged ETFs, with any hawkish signal threatening to deepen the current rout.
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