Futures Movers

Silver futures pull back as margin requirements hiked following spike to 8-year high

Published: Feb. 2, 2021 at 3:25 a.m. ET

By

Barbara Kollmeyer

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Silver bars are pictured in Paris on February 20, 2020. (Photo by JOEL SAGET /... — Silver bars are pictured in Paris on February 20, 2020. (Photo by JOEL SAGET / AFP) (Photo by JOEL SAGET/AFP via Getty Images)
AFP via Getty Images

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SIH21

-5.82%

SLV

+7.08%

Silver prices pulled back on Tuesday, on the heels of the Chicago Mercantile Exchange lifting margin requirements.

In a statement released Monday, the CME said margins would be lifted to $16,500 per contract from $14,000, effective Tuesday, based on “the normal review of market volatility to ensure adequate collateral coverage.”

Silver futures SIH21, -5.87% for March delivery fell nearly 5% to $27.99 an ounce, after jumping 9.3% to settle at $29.418 an ounce on Comex on Monday. The contract at one point topped $30.35 an ounce on Tuesday, the highest intraday level since February 2013.

Talk of a squeeze in silver futures has come as retail interest has surged. According to FactSet, flows into the iShares Silver Trust SLV, +7.08% were the fourth highest of any U.S.-listed exchange-traded fund.

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