Jobs Report Wrecks WisdomTree Silver 3x ETC, Setting Up a High-Stakes CPI Week

Triple-leveraged silver ETC drops 27% weekly as robust payrolls data shifts Fed rate-cut expectations, while inflation data looms.

The WisdomTree Silver 3x Daily Leveraged ETC ended Friday at $12.37, down roughly 20% in a single session, after a stronger-than-expected US employment report sent shockwaves through precious metals markets. On a weekly basis, the triple-leveraged product has now surrendered more than a quarter of its value, with cumulative losses exceeding 27%.

May’s payrolls data showed 172,000 new jobs added — more than double the consensus estimate — dramatically shifting expectations for Federal Reserve policy. Traders quickly repriced the likelihood of rate cuts, with the next FOMC meeting on June 16–17 now seen as a potential tightening event rather than an easing one. The dollar rallied and Treasury yields climbed, two forces that traditionally weigh heavily on silver.

The sell-off was compounded by an oil price shock stemming from the ongoing conflict in the Middle East, which continues to stoke inflation fears. Silver has also been buffeted by weakening industrial demand, as global equity markets came under pressure. For a 3x daily leveraged instrument like the WisdomTree ETC, the spot metal’s decline translates into outsized daily losses — the product’s annualized 30-day volatility has surged to 137%, reflecting the violent swings.

A Market That Remains Structurally Tight

Despite the recent rout, the underlying silver market shows no sign of oversupply. The World Silver Survey projects a sixth consecutive deficit year in 2026, with the supply gap widening to over 46 million ounces. Mining output is stagnating globally, even as investment banks maintain bullish long-term views. J.P. Morgan, for instance, expects average silver prices to reach $81 per ounce this year — a level that contrasts sharply with the current spot price, which only recently broke through the historic $100 barrier before retreating.

The fund itself, with assets of €330 million, sits at the mercy of daily rebalancing mechanics. The ETC tracks the performance of an underlying silver futures index with three times leverage, meaning any move in the precious metal is magnified dramatically in either direction.

Technical Levels and the Data Gauntlet

Chart watchers have identified clear support and resistance zones for spot silver. On the downside, the $65–66 area represents a crucial floor; a breach there could trigger a fall toward $61. On the upside, initial resistance sits near $71, with the 50-day moving average at roughly $76 offering a larger hurdle. These markers serve as a compass for leveraged product holders navigating the current volatility.

The coming days will be dominated by US inflation data. On June 10, the Bureau of Labor Statistics releases the Consumer Price Index for May, with economists expecting a rise to 4.2% year-over-year. The Producer Price Index follows on June 11, providing another gauge of price pressures. Both releases fall in the final stretch before the Fed’s rate decision.

A higher-than-expected inflation print would likely reinforce the dollar’s strength and push bond yields higher, dealing another blow to silver and its leveraged derivatives. Conversely, softer data could reignite hopes of a dovish pivot, potentially sparking a sharp reversal in the ETC. Given the triple leverage, the difference between a small positive and negative move in spot silver means the difference between a gain and a catastrophic loss for holders.

With no company-specific news to drive the product, the WisdomTree Silver 3x Daily Leveraged ETC remains entirely tethered to macro data. Wednesday’s CPI report will set the tone for the next major leveraged swing.