Gold and Silver Sway as CME Raises Margin Requirements

Impact of profit-taking by some investors

Experts "A healthy adjustment phase

Hard to see it turning into a downtrend"

Gold and silver prices have been showing extreme volatility following record gains in 2025.

On the 31st in the international futures market, silver futures traded at $72.603 per troy ounce. Silver prices have been repeatedly surging and plunging recently. On the 29th it fell by 8.7%, marking the largest one-day drop in 46 years, and the next day it rebounded 10.6% to trade around $78. Gold is similar. On the 29th it fell from the $4,500 range to around $4,340, and from the following day until today it fluctuated between $4,310 and $4,400.

Gold and silver prices plunged after the Chicago Mercantile Exchange (CME) raised margin requirements (security deposits) for futures trading on the 29th of last month. The CME raised initial margins for high-risk accounts by 10% for gold futures and 13.6% for silver futures. When margins rise, the cost of maintaining investment positions increases. Some investors hurriedly reduced holdings or took profits.

Silver surged as industrial demand skyrocketed and supply bottlenecks coincided. The country's only ETF investing in silver, 'KODEX Silver Futures (H)', rose 35.98% during December. It was the top-performing ETF among all ETFs including leveraged products. The physical gold ETF posted returns in the 4% range over the same period.

Rania Gul, chief analyst at online brokerage XS.com, said, "The recent silver price correction is closer to a 'healthy adjustment' after a sharp rise," and added, "It's hard to see this as a shift into a downtrend."

Seon Hangyeol / Yang Jiyun, reporters always@hankyung.com