Fundamental News and Triggers
Silver retraces down on margin hike pressure
- Following a parabolic run that saw silver reach a high of $84. on December 29, the market had a severe correction, losing more than 15% of its value in just 48 hours.
- The upheaval started in earnest during the holiday-shortened trading week in late December. On December 26, 2025, the CME Group published Advisory No. 25-393, which raised the initial margin for March 2026 silver futures from $22,000 to $25,000.
- The CME Group acted again, seeing a potential systemic danger as volatility indicators reached levels not seen in almost a decade. On December 30, 2025, the exchange announced a second, harsher raise, increasing margins by 30% to $32,500 per contract.
- When the New York floor opened on the last day of the year, a tsunami of forced liquidations had hit the tape. Investors who had entered the market at $80 were confronted with margin calls they could not satisfy, triggering a cascade sell-off those wiped billions of dollars in paper riches in a matter of hours.
Technical Triggers
- Gold prices are expected to consolidate in the range of $4320 (~Rs 134,000) and $4420 (~Rs 137,000) after this sharp rally and sell off this week.
- Silver prices are expected to consolidate between $70 (~Rs 223,000) and $76 (~Rs 242,000), after the sharp rally and sell off this week.
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