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Silver Tops $80 for First Time, Then Whipsaws on Profit-Taking as CME Hikes Margins

A supply squeeze with rate-cut bets drove the surge before thin holiday liquidity magnified the reversal.

Overview

  • Spot prices jumped to roughly $84 an ounce before sliding 4–8% on Monday, with gold also easing from record territory.
  • India’s MCX March contract hit an all-time high near Rs 2,54,174 per kg, then fell to an intraday low around Rs 2,33,120 as traders booked profits.
  • CME lifted initial margin for March 2026 silver futures to about $25,000, the second increase in two weeks that pressured leveraged positions.
  • Drivers cited include tight inventories, strong industrial demand and expectations of further Fed easing with a weaker dollar, while thin year-end liquidity intensified swings and some analysts flagged bubble-like behavior.
  • Policy and structural factors remain pivotal, with China’s export-licensing rules for silver starting January 1, 2026 and a U.S. critical-minerals review influencing trade flows after 2025 gains of roughly 160–185%.