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Silver Slumps on Year-End Margin Squeeze as Bullion Caps Best Year Since 1979

Fresh CME collateral hikes and profit-taking in thin holiday trade triggered forced selling.

Overview

  • Silver futures on India’s MCX fell as much as 7.5% to the lower circuit before paring losses, while spot silver hovered near $71–$72 and gold eased about 0.8% on Comex.
  • CME Group lifted margin requirements on precious-metal futures for the second time in a week, forcing higher cash buffers and pressuring leveraged positions.
  • Even after the pullback, 2025 closes with gold up roughly 64%–66% and silver near 150%, their strongest annual gains since 1979.
  • Traders pointed to profit-taking, thin year-end liquidity, a firmer dollar and Federal Reserve minutes that cooled hopes for aggressive 2026 rate cuts as drivers of the downturn.
  • Underlying supports remain in focus, including reported multi-year silver supply deficits and strong industrial and investment demand, with markets eyeing China’s January 1 export-licensing regime for potential near-term supply effects.