New York, February 6, 2026, 13:37 EST — During regular session
- Spot silver climbed 6.3% following a dip under $65, though it remains on track for a weekly loss exceeding 10%
- CME is increasing margins on COMEX 5,000-ounce silver futures from 15% to 18%, starting after Friday’s close
- China’s sole exchange-listed pure-silver fund has hit limit-down for the fifth straight session, yet it continues to trade above its NAV
Spot silver surged 6.3% to $75.70 an ounce on Friday, bouncing back after dipping below $65 earlier in the session. Iran’s top diplomat described nuclear talks with the U.S. in Oman as a “good start,” signaling they’d continue—supporting demand for safe-haven metals. The dollar index fell 0.2%, while spot gold gained 3.5% to $4,935.49. “What we’re seeing in silver is huge speculation on the long side,” noted Jim Wyckoff, senior analyst at Kitco Metals. 1
CME Group boosted initial and maintenance margins on COMEX silver futures—5,000-ounce contracts—from 15% to 18% for non-heightened risk accounts, effective after Friday’s close. This marks the third hike since January 13, when CME switched to a percentage-based margin system. The move follows wild swings in precious metals, with spot silver hitting $63.99 at one point Friday before climbing further—a volatility pattern that’s growing all too familiar. 2
In China, the UBS SDIC Silver Futures Fund hit its 10% daily limit down for the fifth day straight and now sits over 40% below its January 26 peak, despite a one-hour trading halt at the open aimed at cooling activity in the product. This fund has been trading with a hefty premium to its net asset value. UBS SDIC Fund Management warned investors they could “suffer severe losses” if they buy units at inflated premiums. Even on Friday, the fund was still trading around 29% above its NAV. Duan Shihua, head of Shanghai Changer Investment Management Consulting, described the situation as a “perfect storm” of product design flaws, investor behavior, and trading mechanics, as the broader metals selloff triggered by President Donald Trump’s nomination of Kevin Warsh as the next Fed chair drags on. 3
Thursday’s drop highlighted how fast the trade can reverse. Silver plunged almost 14% as the dollar hit a two-week peak and a broad sell-off in stocks forced liquidation. Spot silver was down 12.1% at $77.36 by early afternoon, after briefly dipping to $72.21. “Some people are facing margin issues” and might be trimming metal holdings due to losses in equities, said Bob Haberkorn, senior market strategist at RJO Futures. 4
Silver’s swings have been sharper than gold’s, and it’s not just due to its thinner market. The metal straddles the line between “safe haven” buying and industrial use, making it vulnerable to conflicting pressures when markets turn jittery.
Higher margins aim to shield clearing houses from defaults, but they also increase the cash traders must put up to maintain futures positions. This can push leveraged traders to sell during downturns just to meet margin calls, turning a routine pullback into a self-reinforcing decline.
Friday’s bounce hasn’t wiped out the losses. Silver is still sharply down for the week, with traders warning that it could fall further if the dollar strengthens or risk assets continue to slide.
Investors are focused on whether silver can maintain its grip in the mid-$70s through the U.S. close and if the dollar’s recent weakness holds. Attention is also returning to the Oman talks, with geopolitical tensions driving much of the bullion’s momentum.
The next major hurdle is mechanical: CME’s increased margin requirements kick in after Friday’s settlement. Traders will be closely watching how this impacts liquidity and positioning when Asian markets open on Monday.
