Gold and silver futures headed sharply lower Tuesday, with the tumble in prices for golds sister metal coming as the CME Group raised margin deposit requirements for trades following precipitous gains in the precious and industrial metal.
Silver futures for March delivery were trading 1.96, or 6.7, lower to 27.45 an ounce, after jumping 9.3 to mark around the highest settlement for a mostactive contract since around 2013.
The slump in silver follows what some dealers and commodity strategists have attributed to an attempted shortsqueeze, pointing to individual investors who also were blamed for driving up the values in shares of GameStop Corp and AMC Entertainment Holdings in the past few weeks.
On Monday, the Commodity Futures Trading Commissions Acting Chairman Rostin Behnam said that the CFTC is closely monitoring recent activity in the silver markets.
That statement was followed by the CME Group announcing that it was raising margin requirements to 16,500 per contract from 14,000, an 18 hike, effective Feb. 2.
It appears the attempted shortsqueeze in the silver market has failed, at least at this point, said Jim Wyckoff, senior analyst at Kitco.com.
Silver bulls next upside price objective is closing prices above solid technical resistance at this weeks high of 30.35 an ounce, the Kitco analysts wrote. The next downside price objective for the bears is closing prices below solid support at 26, he said.
Prices for silver have rallied in recent days and comes…