Gold pulled back from record highs today (Monday), with
silver also retreating after recent gains, as investors booked profits and
easing geopolitical tensions reduced safe-haven demand.
Spot gold fell 1.7% to $4,455.34 per ounce, after reaching a
record high of $4,550 on Friday. U.S. gold futures for February delivery lost
1.2%, settling at $4,500.30 per ounce. Spot silver slipped 4.6% to $75.47 per
ounce, after briefly trading at $83.62.
Silver Volatility Rises Amid Margin Hikes
Silver markets are entering a critical week following the
Chicago Mercantile Exchange’s second margin increase in two weeks. The initial
margin for March 2026 silver futures rose to about $25,000 from $20,000, adding
pressure on leveraged traders.
Analysts said this could reduce leverage and
trigger volatility, while low inventories and strong industrial demand continue
to support prices.
Tokenized Silver Trading Sees Rapid Growth
Interest in silver is also moving into tokenized markets.
Data from RWA.xyz shows monthly transfer volumes for its tokenized version of
the iShares Silver Trust (SLV) increased more than twelvefold, alongside a 300%
rise in holders and a 40% gain in net asset value.
CME Group announced an increase in margin requirements for silver futures. Starting December 29, 2025, the initial margin for March 2026 silver contracts will rise to $25,000. This move comes amid rising silver prices and growing concern about market manipulation. CME has… pic.twitter.com/ij4MkVKw4v
— Santa Surfing (@SantaSurfing) December 28, 2025
Tokenized silver allows
investors, including non-U.S. participants, to trade digital tokens
representing SLV around the clock, reflecting growing demand for
blockchain-based exposure.
Silver has gained 181% year-to-date, outpacing gold, which
has risen 72% in 2025. Traders are anticipating further U.S. rate cuts next
year, while analysts said gold and silver remain sensitive to economic and
policy developments.
Just sold all my real estate & BTC and and my businesses – I’m all in on gold & silver. pic.twitter.com/dEXiDg9Ma4
— Grant Cardone (@GrantCardone) December 28, 2025
Gold Hits Records Amid Fed Expectations
Just before Christmas, gold prices rose sharply, reaching a
new record. Spot gold traded around $4,420 per ounce, up more than 1.7% on the
day. Analysts attributed the gains to expectations of further U.S. Federal
Reserve rate cuts, a weaker U.S. dollar, and ongoing geopolitical risks.
Kathleen Brooks, Research Director at XTB, said, “The gold
price hit a fresh record high, as geopolitical concerns heat up and hopes grow
that the Fed can continue to cut rates next year.” Some analysts noted that
thin liquidity during the holiday period could increase short-term volatility,
but longer-term forecasts remain broadly positive, supported by central bank
demand and macroeconomic factors.
This article was written by Tareq Sikder at www.financemagnates.com.
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