Silver Price Forecast: XAG/USD dips to near $72.50 as CME raises margins
Trending Articles- Bitcoin Poised For ‘Boring’ 2025 Close – Here’s When BTC’s Real Test Will Come
- TradingKey 2025 Markets Recap & Outlook | Global Central Banks 2025 Recap and 2026 Outlook: Navigating Post-Easing Recovery and Diverging Paths
- Breaking: Gold rises to record high above $4,500 on safe-haven flows
- TradingKey 2025 Markets Recap & Outlook | Wall Street Bullish on 2026: S&P 500 Forecast at 8,000 with AI Gains and Cyclical Stocks Soaring
- Gold Price Hits New High: Has Bitcoin Fully Declined?
- Gold jumps above $4,440 as geopolitical flare, Fed cut bets mount
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.
Read more
* 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.
