Dollar Strength Near 100 Crushes Triple-Leveraged Silver as Death Cross Activates
10.06.2026 - 16:58:35 | boerse-global.de
The WisdomTree Silver 3x Daily Leveraged ETF is enduring a brutal stretch that has erased more than a third of its value in just seven sessions. On Wednesday alone the product shed another 6.46 percent, closing at $9.92. The annualized 30-day volatility of the ETF now stands at a staggering 122.94 percent — a stark measure of the pain leverage inflicts when the underlying metal slides.
Geopolitical tensions have done little to support silver. Despite reports of Iranian missile strikes on US bases and a downed American military helicopter, capital has flowed into crude oil and the US dollar rather than precious metals. The dollar index DXY is hovering near the 100 mark, making silver more expensive for international buyers and weighing on demand.
Rate expectations are adding further pressure. The Federal Reserve currently holds its target range at 3.50 percent to 3.75 percent, and robust economic data — including 172,000 new jobs in the latest report and an April inflation reading of 3.8 percent — point to even tighter policy. Markets are now pricing in a 61 percent probability of a rate hike by October, while more than 70 percent of participants expect an increase by December 2026. Higher rates diminish the appeal of non-yielding assets like silver, and the entire sector is feeling the heat: the triple-leveraged MicroSectors Gold ETN lost nearly 5 percent in the same session.
Should investors sell immediately? Or is it worth buying WisdomTree Silver 3x Daily Leveraged?
The technical picture has turned decisively bearish. Spot silver fell to roughly $64 an ounce on Wednesday, its lowest level since March 23, 2026, and has surrendered nearly all of the gains from the January record high of $121. A so-called death cross has formed, with the 50-day moving average slipping below the 200-day moving average. Silver is now trading well beneath its 20-, 50- and 200-day averages, and the relative strength index sits at 32, approaching oversold territory.
Chart watchers are eyeing the next support line at $61.02, the March 23 low. A break below that level would put the psychological $60 mark in play. Some analysts have identified a further floor at $60.32, and if that gives way, a rapid slide toward the $50 zone is possible. For the triple-leveraged ETF, that scenario would mean double-digit daily losses.
All eyes are now on Thursday’s US producer price index for May, expected to come in at 6.4 percent, ahead of the consumer price release. The consensus calls for a headline CPI reading of 4.2 percent and core inflation of 2.9 percent. Should the figures surprise to the upside, the pressure on silver — and its leveraged derivatives — is likely to intensify.
Longer-term fundamentals present a divided outlook. The structural silver deficit is estimated at 73 million ounces in 2026. JP Morgan sees the metal finishing the year at $81, while Citigroup has outlined a range of $110 to $150 — but only if the macroeconomic backdrop shifts decisively. For now, the market is moving in the opposite direction, and the leveraged ETF is bearing the full force of the reversal.
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