Silver Price Slides After CME Hikes Margins Again -- Commodities Roundup

MARKET MOVEMENTS:

-- Brent crude oil rises 0.45% to $61.62 a barrel.

-- European benchmark gas is up 1.5% to 27.95 euros a megawatt-hour.

-- Gold futures are down 1.45% to $4,322.80 a troy ounce.

-- LME three-month copper futures are down 0.8% to $12,548.50 a metric ton.

TOP STORY:

Silver Price Slides After CME Hikes Margins Again

Precious-metals prices dropped Wednesday morning after the Chicago Mercantile Exchange said it would raise the collateral requirements for trading in gold, silver, palladium and platinum.

CME's changes to margin requirements--the second in a week--will come into effect after the close. Traders must put down more cash to support their trades. The previous margin increase triggered sharp price drops on Monday across metal contracts, followed by a rebound on Tuesday.

OTHER STORIES:

Oil Tanker Pursued by the U.S. Appears to Claim Russian Protection

The pursuit of the Bella 1, an aging oil tanker that has been evading the U.S. Coast Guard for nearly two weeks, was complicated after a Russian flag was sloppily painted on the side of the vessel in an apparent attempt to claim protection from Moscow, according to senior U.S. officials.

Coast Guard vessels have been tracking the very large crude carrier through the Atlantic Ocean, staying about a half-mile behind, according to the officials. They said that they are in a position to seize the tanker should the White House give the green light to proceed, more than 10 days into a pursuit that began around Venezuelan waters.

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Russia Doubles Down on Allegations Ukraine Targeted Putin Residence

It is known as Dolgiye Borody, or Long Beards, and it is one of Russian President Vladimir Putin's favored official residences, built on a lake shore in the country's northwest. In the past, it was used by Soviet leaders Joseph Stalin and Nikita Khrushchev.

The Kremlin has alleged that Ukrainian drones targeted the well-protected site in Novgorod and is using its claim to justify a hardening of its stance in peace negotiations. After the Kremlin declined to provide evidence to back up its assertions, Russia's Defense Ministry on Wednesday published a video of what it said was a downed Ukrainian drone. The footage, shot in a snowy forest at night, couldn't be independently verified.

MARKET TALKS:

Copper Remains in Touching Distance of Record Highs

1110 GMT - Copper prices retreat slightly but remain in touching distance of record highs. In late-morning trade in the U.K., benchmark three-month copper futures on the London Metals Exchange fall 1.1% to $12,426.00 a metric ton. Copper hit a record intraday high of $12,960 Monday before falling back slightly, as the red metal continues to trade at elevated levels on surging demand from AI data centers and the looming threat of U.S. tariffs to supply. Copper is up around 42% for the year, on track for its best year since 2009. ([e-mail])

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European Gas Prices Rise But Remain on Track for Heavy Annual Loss

1025 GMT - European natural-gas prices recover after trading down at the beginning of the week. The Dutch TTF contract rises 1.8% to 28.02 euros a megawatt hour, with the benchmark price on track for a loss of around 44.5% for the year. According to industry group Gas Infrastructure Europe, gas storage levels across the European Union are about 63% full--below the seasonal average--but supply conditions remain comfortable. Cold weather conditions were well met by healthy supply, keeping European gas prices within a tight range this month. ([e-mail])

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Palm Oils Ends Lower Amid Weak Demand

1008 GMT - Palm oil ended slightly lower amid weak demand. Malaysia's palm oil exports during the Dec. 1-31 period are estimated to have declined 5.2% on month at 1,197,434 metric tons, according to cargo surveyor AmSpec Agri Malaysia. Palm oil production growth in Indonesia and Malaysia are expected to remain constrained in 2026 due to issues such as aging trees, said Baocheng Futures analysts. However, the actual implementation of Indonesia's palm-oil plantation expansion plans as well as biodiesel policies are key variables that may affect global supply, they say. Among the world's major palm-oil consumers, India's imports in 2026 will likely depend on the price differences in palm oil and other vegetable oils, they add. The Bursa Malaysia Derivatives contract for March delivery ended 20 ringgit lower at 4,050 ringgit a ton. ([e-mail])

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Oil Nudges Down as Supply Pressures Continue

0910 GMT - Oil nudges down as traders close out a year in which oversupply fears pushed the commodity lower, despite ongoing geopolitical tensions. Brent crude is down 0.35% at $61.12 a barrel, while WTI falls 0.4% to $57.74 a barrel. Oil prices rallied earlier this month after the U.S. announced a blockade on Venezuelan oil exports and on uncertainty that Russia-Ukraine peace talks would bear fruit. However, advances in those talks reduced geopolitical premium, while oversupply concerns persist. Brent crude is down over 18% for the year, while WTI has dropped just shy of 20% in 2025. ([e-mail])

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Silver Falls Steeply After CME Raises Margins Further

0854 GMT - Silver futures fall 8% after exchange operator CME Group increased margin requirements for the second time in a week. In New York, futures trade at $71.69 an ounce, having reached over $80 in recent days. Investors on the exchange must put down more cash to support their trades, pressuring some into selling which drags prices lower. Silver notched its largest single-day gain on record Tuesday, as traders responded to a dip in the precious metal's price Monday caused by the CME's first change to margin requirements. Silver is on its longest winning streak since February 1980, and--barring a collapse Wednesday--will have gained for eight straight months. ([e-mail])

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Gold Falls as CME Raises Margins Again

0825 GMT - Gold falls as the precious metal limps over the line of a record-breaking year. Futures in New York drop 1% to trade at $4,343.20 a troy ounce, having dipped below $4,300 overnight. Exchange operator CME Group increased margin requirements for the second time in three days, demanding traders put down more cash to trade the precious metal and pushing its price down. Despite the slowdown, gold remains poised to record its largest net gain in a single year, rising by around 65% over the past 12 months. ([e-mail])

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Iron Ore Falls; Prices Could Face Volatility

0406 GMT - Iron ore falls in the Asian session. Seasonal shipments at the year-end have resulted in accumulating port inventories, putting downside pressure on prices, Nanhua Futures writes in a note. However, steel mill profits remain high and restocking demand for raw material will likely provide support for prices, signaling that supply and demand factors will balance each other but cause some volatility, it says. The most-traded iron-ore contract on the Dalian Commodity Exchange is down 0.8% at CNY788.0 a ton. ([e-mail])

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Base Metals Mixed in Year-End Trading

0340 GMT - Base metals are mixed in the Asian session. In the year-end trading, prices are likely to remain headline and flow-driven, with upside vulnerable to profit-taking until liquidity improves in early January, Sucden Financial says in a note. The three-month LME copper contract is 0.2% lower at $12,532.00/ton, while that of aluminum is 0.2% higher and zinc is 0.4% lower. ([e-mail])

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Gold Edges Higher; Prices Likely to Correct or Consolidate

0108 GMT - Gold edges higher in the early Asian session. The precious metal has gained around 65% this year. The rally "not only reflected deep macroeconomic concerns but also pushed gold into a high valuation zone, making the market more sensitive to short-term corrective factors," Linh Tran, market analyst at XS.com, says in a note. The first quarter of 2026 is likely to be a period of correction or consolidation, as both the high-interest-rate environment and expectations that the Fed will maintain a cautious stance will remain short-term headwinds, Tran says. Spot gold is 0.1% higher at $4,342.50/oz. ([e-mail])

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(END) Dow Jones Newswires

12-31-25 0741ET