Gold and silver prices have continued to experience price drops on Monday after last Friday’s massive sell-offs that were triggered by a nomination of the next Fed chair, followed by new margin requirements at the CME commodity exchange.
On Friday last week, gold futures lost more than 10%, suffering the worst day since 1983 and scaling back from record gains seen throughout 2026. Silver prices followed suit and crashed 30%, which was the worst daily decrease ever recorded.
Analysts say that market participants reacted to a variety of factors. US president Donald Trump has nominated Kevin Warsh as a successor to the current Federal Reserve head Jay Powell, easing fears over Fed’s independence. US dollar appreciated, making bullion less attractive for holders of other currencies.
On Saturday, CME Group announced hikes in margins on its precious metal futures. An increase in margin requirements is generally negative for the affected contracts, as the higher capital outlay can dampen speculative participation, reduce liquidity, and pressure traders to unwind positions.
Some analysts argued that the price correction was inevitable, as market participants were waiting for the right profit-taking moment. On Monday, gold and silver futures continued with their downward trajectory. Still, gold prices remain 65% higher year-to-date, while silver is up about 150% amid persistent geopolitical concerns and inflation worries.
Theodor Lisovoy, Managing Editor, Rough&Polished
