The post XAG/USD dips to near $72.50 as CME raises margins appeared on BitcoinEthereumNews.com.

Silver price (XAG/USD) has lost its nearly a 4.5% gain registered in the previous session, trading around $72.50 during the Asian hours on Wednesday. Silver prices came under pressure after the CME raised margin requirements on Silver futures, prompting leveraged traders to reduce positions as prices became technically stretched. Analysts said the pullback reflected position unwinding rather than any deterioration in underlying demand. However, Silver prices are on track for an annual gain of over 150% in 2025, marking the metal’s strongest yearly performance. The rally accelerated after US President Donald Trump’s global tariff rollout and has been further supported by persistent geopolitical tensions, US rate cuts, and strong industrial demand, especially from the solar, electronics, and data-center sectors. Silver’s rally has also been driven by a surge in speculative demand in China, pushing Shanghai Futures Exchange premiums to record highs. The elevated premiums signal intense local demand and have tightened global supply chains, mirroring earlier inventory squeezes in London and New York vaults. Meanwhile, the Federal Open Market Committee’s (FOMC) December Meeting Minutes, released Tuesday, showed most participants favored pausing further rate cuts if inflation continues to ease. Some officials also argued for holding rates steady after three cuts this year aimed at supporting a weakening labor market. The demand for safe-haven metals, including silver, increases over the geopolitical tensions, Uncertainty over a Russia-Ukraine peace deal, renewed Middle East tensions, and frictions between the US and Venezuela. Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in…

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Filed under: News - @ December 31, 2025 4:23 am