Gold, Silver Fall as CME Margin Hike Stokes Selling

03/02/2026 03:26 AST

Gold and silver prices pared some losses but remained under pressure on Monday, after increased CME margin requirements added to the selling pressure following last week's selloff sparked by Kevin Warsh's nomination as the incoming Federal Reserve chair. Spot gold was 2.3% lower at $4,754.51 per ounce by 1319 GMT, trimming losses from a near 10% fall earlier in the session. Bullion shed more than 9.8% on January 30, in its sharpest one-day drop since 1983, Reuters reported.

Gold has lost about $900 since hitting an all-time-high of $5,594.82 on January 29, erasing most of this year's gains.

US gold futures for April delivery were up 0.7% at $4,777.70/oz. Spot silver lost 3.8% to $81.41, recovering from a fall of 15% earlier on Monday. It has shed about 33% since notching an all-time-peak of $121.64 last week.

Prices have regained from lows earlier in the session as investors buy the dip and cover short positions, said Fawad Razaqzada, market analyst at City Index and FOREX.com.

"But that doesn't mean that the downward trend that started at the back end of last week is over, so this could just be a temporary bounce before we see more volatility," Razaqzada added. The CME announced hikes in margins on its precious metal futures on January 30 and said the changes were set to take effect after market close on Monday.

"The increase in margin requirements makes holding speculative positions less appealing now and will also force a lot on the retail side of the market who do not have the extra liquidity to sell positions," said Zain Vawda, analyst at MarketPulse by OANDA. The dollar index edged higher last week after US President Donald Trump named former Federal Reserve Governor Warsh as his Fed chair pick, making dollar-priced bullion more expensive for buyers overseas.

While investors expect Warsh to favor rate cuts, they anticipate he will tighten the Fed's balance sheet, a move typically supportive of the dollar.

Barclays said in a note on Monday it expects rate cuts, fiscal expansion, quantitative easing, fiat debasement and de-dollarisation to likely keep investment demand firm for gold. Spot platinum fell by 0.6% to $2,145.03 per ounce after hitting a record $2,918.80 on January 26, while palladium rose 1.2% to $1,719.25.

Asharq Al Awsat