Silver futures retreat as margin requirements rise after 8-year increase

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Silver prices retreated on Tuesday, following the margin requirements of the Chicago Mercantile Exchange.

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

Silver Futures SIH21,
-5.38%
for March delivery fell nearly 5% to $ 27.99 an ounce, after jumping 9.3% to settle at $ 29,418 an ounce on Comex Monday. The contract at one point exceeded $ 30.35 per ounce on Tuesday, the highest intraday level since February 2013.

There was talk of a decline in silver futures as retail interest rates rose. According to FactSet, it flows into iShares Silver Trust SLV,
+ 7.08%
were the fourth largest publicly traded fund in the United States.

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