Silver plunges over 10% to $72 after CME raises margin requirements

Key Takeaways

• Silver drops over 10% after CME raises margin requirements following a historic rally.
• Precious metals pull back broadly, though some analysts still see supportive long term fundamentals.

Silver slid sharply on Monday after surging to record highs, with prices falling more than 10% as tighter trading conditions triggered a broad pullback across the precious metals market.

The metal had topped $84 on Sunday, capping an extraordinary rally that pushed silver up more than 145% over the past year. At press time, silver was trading near $72 after briefly dipping to an intraday low close to $70.

The selloff followed a move by CME Group to raise margin requirements for silver futures, a change that took effect Monday. The exchange said the adjustment was part of its regular review of market volatility to ensure sufficient collateral coverage, a step that can force leveraged traders to cut positions and amplify price swings.

Gold also retreated after a strong run, falling nearly 5% to $4,325. Copper dropped close to 5% to $5.57, while platinum plunged more than 14% from an early high of $2,572 to around $2,120. Palladium was the biggest laggard, sliding more than 16% from roughly $1,930 to near $1,600.

The sharp moves have reignited concerns about volatility following the rapid rise in precious metals prices. Some analysts had cautioned that silver’s pace of gains left it vulnerable to abrupt corrections, particularly as speculative activity increased.

Even so, some market participants say the broader outlook for metals remains supportive, citing easier monetary policy, ongoing fiscal and geopolitical uncertainty, and steady diversification demand.