ProShares Ultra Gold (NYSEARCA:UGL) Shares Down 4.9% – Time to Sell?

Shares of ProShares Ultra Gold (NYSEARCA:UGL) dropped 4.9% during mid-day trading on Wednesday . The stock traded as low as $47.04 and last traded at $47.3040. Approximately 1,698,890 shares were traded during mid-day trading, a decline of 62% from the average daily volume of 4,474,504 shares. The stock had previously closed at $49.76.

ProShares Ultra Gold News Roundup

Here are the key news stories impacting ProShares Ultra Gold this week:

• Negative Sentiment: Hot CPI data reinforced bets that the Fed will stay restrictive, driving gold prices lower and strengthening the dollar. Gold (XAUUSD) Price Forecast: Gold Price Tumbles as Hot CPI Reinforces Fed Rate Hike Path
• Negative Sentiment: Gold is trading well below key technical levels, including the 200-day moving average, signaling continued selling pressure and weakening trend momentum. Gold Price Analysis – Gold Continues to See Selling Pressure
• Negative Sentiment: Analysts at Kitco and Saxo Bank said elevated inflation, higher yields, and a stronger dollar are keeping pressure on gold, with some warning the metal may need to test lower support levels before sentiment improves. Gold, silver fall as CPI keeps Fed pressure on – Kitco AM Report
• Negative Sentiment: Market commentary also highlighted the risk of further downside as traders increase bets on a possible Fed hike later this year, with charts pointing to a continuation of the downtrend. Gold, silver and bitcoin fall as traders up Fed rate hike bets
• Neutral Sentiment: Some reports noted that long-term gold fundamentals, including central bank demand and geopolitical risk, still offer support, but those tailwinds are being outweighed in the short term by rate and dollar pressure. $4,075/oz gold is now in play, and the price will need to challenge $4,600 before bullish momentum resumes – Saxo Bank’s Hansen

ProShares Ultra Gold Price Performance

The firm has a 50-day moving average of $59.25 and a 200-day moving average of $62.57.

Hedge Funds Weigh In On ProShares Ultra Gold

Several hedge funds and other institutional investors have recently added to or reduced their stakes in UGL. Quadrature Capital Ltd bought a new position in ProShares Ultra Gold in the 3rd quarter valued at approximately $16,390,000. China Universal Asset Management Co. Ltd. lifted its position in ProShares Ultra Gold by 397.2% in the 4th quarter. China Universal Asset Management Co. Ltd. now owns 386,800 shares of the company’s stock valued at $21,475,000 after acquiring an additional 309,000 shares in the last quarter. Jump Financial LLC bought a new position in ProShares Ultra Gold in the 4th quarter valued at approximately $9,073,000. Genesis Financial Group LLC purchased a new stake in ProShares Ultra Gold during the 4th quarter valued at $3,155,000. Finally, Group One Trading LLC raised its stake in ProShares Ultra Gold by 121.3% during the 4th quarter. Group One Trading LLC now owns 42,702 shares of the company’s stock valued at $2,371,000 after buying an additional 23,404 shares during the last quarter.

About ProShares Ultra Gold

ProShares Ultra Gold (the Fund) seeks daily investment results that correspond to twice (200%) the daily performance. The Fund generally invests in financial instruments as a substitute for investing directly in a commodity or currency in order to gain exposure to the commodity index, commodity or currency. The Funds may purchase United States Treasury Bills, agency securities, and other high-credit quality short-term fixed income or similar securities with original maturities of one year or less.