By Barbara Kollmeyer
Silver prices pulled back on Tuesday, on the heels of the Chicago Mercantile Exchange lifting margin requirements.
In a statement released Monday, the CME said margins would be lifted to $16,500 per contract from $14,000, effective Tuesday, based on “the normal review of market volatility to ensure adequate collateral coverage.”
Silver futures for March delivery fell nearly 5% to $27.99 an ounce, after jumping 9.3% to settle at $29.418 an ounce on Comex on Monday. The contract at one point topped $30.35 an ounce on Tuesday, the highest intraday level since February 2013.
Talk of a squeeze in silver futures has come as retail interest has surged. According to FactSet, flows into the iShares Silver Trust /zigman2/quotes/205744453/composite SLV -1.51% were the fourth highest of any U.S.-listed exchange-traded fund.