New York, Feb 2, 2026, 09:40 EST — Regular session
- First Majestic dips in early trading amid a steep drop in silver prices.
- Precious metals-linked equities took a hit as futures margins rose and rate expectations shifted.
- Traders are eyeing U.S. labor data later this week as the next key catalyst.
Shares of First Majestic Silver Corp dropped roughly 17% to $20.84 in early Monday trading, hit by a new slide in silver prices that weighed on the sector. The stock hit a low of $19.54 after starting the day at $22.50.
That’s key since miners essentially offer a leveraged play on the metal: swings in silver prices directly impact revenue forecasts, hedging strategies, and risk thresholds all at once. When this alignment occurs, stock prices can mirror commodity shifts—but accelerated.
Spot silver, the cash price, plunged 3.8% to $81.41 an ounce, after tumbling as much as 15% earlier in the session. Gold dropped 2.3%. The selloff came after CME Group raised margin requirements—the cash traders must put up to hold futures positions—and following a shift in rate expectations sparked by Donald Trump’s nomination of former Fed governor Kevin Warsh to head the Federal Reserve. The exchange said the higher margins kick in after Monday’s market close. Fawad Razaqzada of City Index and FOREX.com called any rebound “temporary,” while Zain Vawda at OANDA noted that the increased margins might push some retail traders to sell. Reuters
Shares in Pan American Silver dropped roughly 13.9%, while Hecla Mining slid about 14.5%. The Global X Silver Miners ETF lagged behind too, down close to 14.7%.
J.P. Morgan predicts gold will climb to $6,300 an ounce by year-end, fueled by strong central-bank and investor demand. But the bank sounded more reserved on silver, noting the rally’s momentum has become less clear. It still expects silver to hold a higher average floor near $75 to $80 an ounce despite recent volatility.
First Majestic runs four underground mines in Mexico and holds the Jerritt Canyon gold project in Nevada, according to a recent filing.
Silver can bounce back quickly when short sellers cover and dip buyers jump in. Yet, if liquidation keeps hitting the margin adjustment, miners might remain under pressure despite the metal holding firm.
The next key driver will be the U.S. January jobs report, set for Feb. 6 at 8:30 a.m. ET from the U.S. Bureau of Labor Statistics. This release frequently moves the dollar and rate expectations, which in turn directly impact precious metals.
