Silver futures pull back as margin requirements hiked following spike to 8-year high

Silver futures spike, fueled by online trading

Silver prices pulled back on Tuesday, on the heels of the Chicago Mercantile Exchange lifting margin requirements.

In a statement released Monday, the CME said margins would be lifted to $16,500 per contract from $14,000, effective Tuesday, based on “the normal review of market volatility to ensure adequate collateral coverage.”

Silver futures

for March delivery fell nearly 5% to $27.99 an ounce, after jumping 9.3% to settle at $29.418 an ounce on Comex on Monday. The contract at one point topped $30.35 an ounce on Tuesday, the highest intraday level since February 2013.

Talk of a squeeze in silver futures has come as retail interest has surged. According to FactSet, flows into the iShares Silver Trust

were the fourth highest of any U.S.-listed exchange-traded fund.

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