Silver Price Forecast: XAG/USD dips to near $72.50 as CME raises margins
Trending Articles- Bitcoin Suffers Year’s Strongest Waterfall-Style Decline. Will It Next Drop to the $60,000 Mark?
- Bitcoin drops below $65K amid reinforced bear market signals
- Forex Today: US Dollar stays resilient ahead of key US data
- $1.5 Billion in Crypto Assets Liquidated, Bitcoin Falls Below $66,000 Mark. What Is the Reason?
Silver price came under pressure after the CME increased margin requirements on Silver futures.
The grey metal is set for an annual gain exceeding 150% in 2025, marking its strongest yearly performance.
December FOMC Minutes showed most participants favored pausing further rate cuts if inflation continues to decline.
Silver price (XAG/USD) has lost its nearly a 4.5% gain registered in the previous session, trading around $72.50 during the Asian hours on Wednesday. Silver prices came under pressure after the CME raised margin requirements on Silver futures, prompting leveraged traders to reduce positions as prices became technically stretched. Analysts said the pullback reflected position unwinding rather than any deterioration in underlying demand.
However, Silver prices are on track for an annual gain of over 150% in 2025, marking the metal’s strongest yearly performance. The rally accelerated after US President Donald Trump’s global tariff rollout and has been further supported by persistent geopolitical tensions, US rate cuts, and strong industrial demand, especially from the solar, electronics, and data-center sectors.
Silver’s rally has also been driven by a surge in speculative demand in China, pushing Shanghai Futures Exchange premiums to record highs. The elevated premiums signal intense local demand and have tightened global supply chains, mirroring earlier inventory squeezes in London and New York vaults.
Meanwhile, the Federal Open Market Committee’s (FOMC) December Meeting Minutes, released Tuesday, showed most participants favored pausing further rate cuts if inflation continues to ease. Some officials also argued for holding rates steady after three cuts this year aimed at supporting a weakening labor market.
The demand for safe-haven metals, including silver, increases over the geopolitical tensions, Uncertainty over a Russia-Ukraine peace deal, renewed Middle East tensions, and frictions between the US and Venezuela.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
