London, February 2, 2026, 11:10 GMT — Regular session
Silver prices dropped again Monday, with spot silver down 3.4% to $81.65 an ounce by 1008 GMT after plunging as much as 15% earlier. The sell-off came as CME margin hikes and a stronger dollar forced traders to scale back leveraged positions. Since hitting a record $121.64 last week, silver has lost roughly a third of its value. “The increase in margin requirements is creating a feedback loop,” said Zain Vawda, an analyst at MarketPulse by OANDA. Reuters
The selloff comes after two brutal sessions in commodities triggered by U.S. President Donald Trump’s choice of former Fed Governor Kevin Warsh to replace Jerome Powell in May. Silver tumbled 27% on Friday, marking its largest single-day drop ever. Gold also took a hit, suffering its steepest daily decline since 1983. Vivek Dhar, commodities strategist at Commonwealth Bank of Australia, said the market sees Warsh as a more hawkish pick, while Tony Sycamore from IG compared the panic to the chaos of 2008.
CME Clearing increased performance bond requirements—the cash traders need to post to maintain futures positions—effective after Monday’s close. In a notice, the exchange raised initial margin on COMEX 5,000-ounce silver futures to 15% for most contract months, up from 11%, while gold margins were bumped to 8% from 6%.
Rising margin costs usually hit speculative positions hardest. If prices fall sharply, brokers push for extra collateral. Traders unable to cover the call often have no choice but to sell, even if they’d prefer to keep their positions.
Silver’s volatility has been glaring, especially as liquidity dries up and prices swing wildly. After hitting record highs last week, the market is now scrambling to find a steady benchmark amid sudden drops.
But the path ahead isn’t clear. J.P. Morgan flagged that the factors pushing silver above $80 an ounce since late December have become murkier. The bank cautioned the gold-to-silver ratio—which measures how many ounces of silver buy one ounce of gold—might climb again unless central banks step in as consistent dip buyers. Still, J.P. Morgan expects silver to maintain a higher average floor, roughly between $75 and $80 for the time being.
A stronger dollar ramps up pressure by pushing bullion prices higher for buyers outside the U.S. As positioning unwinds, traders are quick to offload gains and hesitant to jump in on pullbacks.
The next question is if volatility will calm down after the new margin levels kick in. Some investors argue forced selling is the headline—but that pressure fades as soon as the calls stop coming.
Friday brings the U.S. jobs report, with the Employment Situation for January set to drop at 8:30 a.m. ET on Feb. 6. This release could shift outlooks for U.S. interest rates and the dollar, affecting silver prices.
