Silver prices fell sharply on Monday after reaching record highs earlier in the session, retreating more than 7% amid heightened volatility following a historic rally in precious metals this year.
Key developments
Silver dropped to around $71.23 per ounce by mid-morning after surging to an intraday peak of $82.67, marking a dramatic reversal from levels that briefly pushed the metal above the $80-per-ounce threshold for the first time.
The steep decline followed a decision by CME Group to raise margin requirements for silver trading, increasing the minimum collateral required from investors. Analysts said the move was aimed at cooling speculative activity after silver’s rapid ascent.
Silver capped a historic surge late last week, jumping nearly 10% in a single session and breaking through multiple record price levels after surpassing $78 per ounce for the first time.
Why silver prices fell
Market participants cited higher margin requirements as a key driver behind Monday’s pullback, as tighter trading conditions tend to reduce leverage and speculative positioning. Analysts have also cautioned that silver is historically prone to sharp price swings following rapid gains.
Some market observers have warned that silver often experiences parabolic rallies followed by abrupt corrections, making it more volatile than other precious metals such as gold.
Despite the sharp drop, some strategists believe the broader outlook for precious metals remains supportive, pointing to expectations of lower interest rates, ongoing geopolitical uncertainty, fiscal risks, and continued diversification demand from investors.
Other metals
The sell-off extended across the commodities complex. Gold prices fell nearly 5% to around $4,325.80 per ounce, while copper slid close to 5% to $5.57.
Platinum saw the steepest decline, plunging more than 14% from an early-session high of $2,572.20 to about $2,120 per ounce by mid-morning.
Why silver remains up this year
Despite Monday’s losses, silver remains significantly higher than levels seen at the start of 2025. Prices have been supported by multiple US interest rate cuts, strong demand from AI data centers, constrained global supply, and uncertainty surrounding tariffs.
The rally has also attracted speculative interest from retail investors, adding to volatility as traders bet on continued price gains.
Over the weekend, concerns were also raised about rising silver prices and potential export restrictions, given the metal’s importance in industrial manufacturing and advanced technologies.
