Silver falls 10% to $72 after CME lifts margin requirements.
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Silver falls more than 10% after CME lifts margin requirements following historic rally. Although some analysts still see supportive long-term fundamentals, precious metals broadly retreated.
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After hitting record highs, silver slipped sharply on Monday, falling more than 10%, as tight trading conditions led to a broad pullback in the precious metals market.
The metal rose to $84 on Sunday, marking a rare rally that has seen silver rise more than 145% over the past year. At press time, silver was trading around $72 after a brief intraday dip near $70.
The sell-off follows a move by CME Group to raise margin requirements for silver futures, a change effective Monday. It said the currency adjustment was part of its regular assessment of market volatility to ensure adequate collateral coverage.
Gold fell about 5% to $4,325 after a strong run. Copper fell 5% to $5.57, while platinum fell more than 14% to $2,120 from $2,572 earlier. Palladium was the biggest laggard, sliding more than 16% from $1,930 to near $1,600.
The sharp moves sparked concerns over volatility following a sharp rise in precious metals prices. Some analysts have warned that the speed of silver's earnings has led to a sudden correction, especially as speculation has increased.
Even so, some market participants say the broader outlook for the metal remains supportive, citing easy monetary policy, continued fiscal and geopolitical uncertainty, and a continued need for diversification.
