Silver prices fell more than 16% in European trading on Monday, extending their losses for the third straight session and recording their lowest levels this year and the lowest in five weeks, amid a heavy selloff across precious metals markets, especially after CME Group raised margin requirements for gold and silver futures contracts.

Prices are also under pressure from the stronger US dollar against a basket of global currencies, supported by broad investor approval of Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve.

Price Overview

• Silver prices today: Silver dropped by 16.25% to $71.38 per ounce, the lowest level since December 31, down from the session opening at $85.23, and recording a session high at $88.96.

• At Friday’s settlement, silver prices plunged by 26.5%, marking a second consecutive daily loss and the largest single-day drop on record, driven by accelerated correction and profit-taking from the all-time high of $121.65 per ounce.

• Over January, silver prices still posted a 19% gain, marking the ninth consecutive monthly increase, supported by strong retail investor demand.

CME Group decisions

CME Group, the owner of the world’s largest and most important derivatives exchanges, announced on Saturday that it will raise margin requirements on metals futures contracts, with the new rules taking effect after market close on Monday, February 2, 2026.

The decision includes raising margin requirements on gold futures contracts on COMEX from 6% to 8%, while silver futures margins were lifted more sharply to 15% from 11%.

The increases also cover platinum and palladium contracts, in a move aimed at strengthening financial safeguards and reducing available leverage for traders following the record rally in precious metals prices.

US dollar

The US dollar index rose by 0.15% on Monday, extending gains for the second straight session and hitting a one-week high, reflecting continued strength in the US currency against a basket of major and minor currencies.

The advance follows positive market reaction to President Donald Trump’s nomination of Kevin Warsh as Federal Reserve Chair, a step that boosted confidence regarding the future direction of monetary policy.

Expectations have increased that the Federal Reserve may adopt a more hawkish stance in tackling inflation, prompting traders to add to long dollar positions against major and secondary currencies.

John Higgins, Chief Economist at Capital Economics, said the market reaction to Donald Trump’s nomination of Kevin Warsh as Federal Reserve Chair broadly aligns with their view that the president has made a relatively safe choice.

He added that the prevailing impression is that Warsh is not fully under presidential influence and would not undermine Federal Reserve independence or heighten concerns about currency weakness.

Gold prices fell more than 10% in European trading on Monday, deepening losses for a third consecutive session and hitting a four-week low, amid a violent selloff across precious metals markets, especially after CME Group raised margin requirements for gold and silver futures contracts.

Prices are also pressured by the rise of the US dollar against a basket of global currencies, supported by broad investor approval of Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair.

Price overview

Gold prices today fell by more than 10% to $4,402.83, the lowest level since January 5, from the session opening at $4,894.33, and recorded an intraday high at $4,894.33.

At Friday’s settlement, the precious metal lost 9.0%, marking its second consecutive daily loss and the largest single-day drop since 1983.

Beyond accelerated profit-taking from the all-time high at $5,589.13 per ounce, gold prices declined broadly due to easing concerns over Federal Reserve independence.

Over January, gold prices rose 13%, marking a sixth consecutive monthly gain and the largest monthly increase since September 1999, driven by safe-haven buying amid escalating global geopolitical and economic tensions.

CME Group decisions

CME Group, owner of the world’s largest derivatives exchanges, announced on Saturday an increase in margin requirements for metals futures contracts, with the new adjustments to take effect after market close on Monday, February 2, 2026.

The decision included raising margin requirements on gold futures contracts on COMEX from 6% to 8%, while silver futures margins were increased more sharply to 15% from 11%.

The increases also extended to platinum and palladium contracts, in a move aimed at strengthening financial safeguards and reducing available leverage for traders amid record highs in precious metals prices.

US dollar

The dollar index rose 0.15% on Monday, extending gains for a second straight session and recording a one-week high, reflecting continued strength in the US currency versus a basket of peers.

This advance comes as markets welcomed President Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve, reinforcing confidence about the future direction of monetary policy.

Expectations have increased that the Federal Reserve may adopt a more hawkish approach to fighting inflation, prompting traders to build long positions in the US dollar against major and minor currencies.

John Higgins, chief economist at Capital Economics, said the market reaction to Trump’s nomination of Kevin Warsh as Federal Reserve chair broadly aligns with the view that the president made a relatively safe choice.

Higgins added that the prevailing impression is that Warsh is not fully under presidential influence and is unlikely to undermine Federal Reserve independence or intensify concerns about currency weakness.

US interest rates

According to the CME FedWatch tool, pricing for keeping US interest rates unchanged at the March meeting stands at 85%, while pricing for a 25-basis-point rate cut stands at 15%.

To reprice these probabilities, investors are closely watching upcoming US economic data, along with comments from Federal Reserve officials.

Gold outlook

Tim Waterer, chief market analyst at KCM Trade, said that while Warsh’s nomination was likely the initial trigger, it does not fully justify the sharp drop in precious metals prices, noting that forced liquidation and higher margin requirements created a chain reaction.

Waterer added that Warsh may cut interest rates shortly after taking office, but he is not the “ultra-dovish” candidate the market had largely expected.

He explained that Warsh’s policy stance is generally supportive of the dollar and therefore negative for gold, given his focus on inflation and his skepticism toward quantitative easing and large Federal Reserve balance sheets.

SPDR Fund

Gold holdings at SPDR Gold Trust, the world’s largest gold-backed ETF, increased by about 0.57 metric tons on Friday, bringing total holdings to 1,087.10 metric tons.

The euro fell in European trading on Monday against a basket of global currencies, continuing to trade in negative territory for a second straight session versus the US dollar, under the watch of European monetary authorities, who warned that excessive strength in the euro exchange rate could renew inflation pressures in Europe.

The US dollar continues to advance in the foreign exchange market, supported by broad investor approval of Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair.

Price overview

The EUR/USD exchange rate fell by 0.1% today to $1.1839, from the day’s opening at $1.1851, and recorded an intraday high at $1.1875.

The euro ended Friday down 1.05%, marking its second daily loss in the past three sessions, due to correction and profit-taking from a five-year high at $1.2082.

Over January, the euro gained 1.1% against the dollar, posting its third consecutive monthly gain, supported by positive expectations for European economic growth and the assumption that European interest rates will be kept steady for as long as possible this year.

European monetary authorities

The euro’s rise above the $1.20 level for the first time in five years raised concerns among European monetary authorities, prompting European Central Bank policymakers to issue a series of warning remarks about the impact of currency strength on the outlook for inflation and economic growth.

Economists noted that a stronger euro could amplify the deflationary effect of strong Chinese exports, push the European Central Bank out of its “comfort zone,” and drive it toward further interest rate cuts.

Opinions and analysis

Geoff Yu, EMEA macro strategist at BNY, said that although the euro-dollar exchange rate stayed well above the ECB’s baseline scenario last year without triggering strong deflation risks, trade uncertainty remains in place.

Ray Attrill, head of FX strategy at National Australia Bank, said that ECB comments appear independent, but it is notable that the $1.20 level in EUR/USD seems to have acted as a trigger point.

Attrill added that the move in the euro/dollar pair, which was not especially strong until recently, somewhat masks broader euro strength, which will in turn be reflected in the ECB’s inflation expectations.

US dollar

The dollar index rose 0.15% on Monday, extending gains for a second straight session and recording a one-week high, reflecting continued strength in the US currency against a basket of global peers.

This rise comes as markets welcomed President Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve, a move that strengthened confidence about the future direction of monetary policy.

Expectations have increased that the Federal Reserve may adopt a more hawkish approach to fighting inflation, prompting traders to increase long positions in the US dollar against major and minor currencies.

John Higgins, chief economist at Capital Economics, said the market reaction to Trump’s nomination of Kevin Warsh as Federal Reserve chair broadly matches the view that the president made a relatively safe choice.

Higgins added that the prevailing impression is that Warsh is not fully under presidential influence and is unlikely to undermine Federal Reserve independence or intensify concerns about currency weakness.

The Japanese yen fell in Asian trading on Monday against a basket of major and minor currencies, extending its losses for a second straight session versus the US dollar and recording a two-week low, after remarks by Prime Minister Sanae Takaichi highlighting the benefits of a weaker domestic currency.

The US dollar continues to advance in the foreign exchange market, supported by broad investor approval of Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair.

In addition, the yen remains under further negative pressure as expectations for a Japanese interest rate hike in March continue to fade, especially with easing inflation pressures on policymakers at the Bank of Japan.

Price overview

The USD/JPY exchange rate rose by 0.5% today to 155.51 yen, the highest level since January 23, up from Friday’s close at 154.75 yen, and recorded an intraday low at 154.75 yen.

The yen ended Friday down 1.1% against the dollar, marking its second daily loss in the past three sessions, amid continued correction and profit-taking from a three-month high at 152.09 yen, after weaker-than-expected core inflation data from Tokyo.

Over January as a whole, the Japanese yen gained 1.35% against the US dollar, posting its first monthly rise since August, supported by growing speculation about coordinated intervention by US and Japanese monetary authorities in the FX market.

US dollar

The dollar index rose 0.15% on Monday, extending gains for a second straight session and hitting a one-week high, reflecting continued strength of the US currency against a basket of global peers.

This advance comes as markets welcomed President Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve, a move that reinforced confidence about the future direction of monetary policy.

Expectations have increased that the Fed may adopt a more hawkish stance in tackling inflation, prompting traders to add to long dollar positions against major and minor currencies.

John Higgins, chief economist at Capital Economics, said the market reaction to Trump’s nomination of Kevin Warsh as Federal Reserve chair broadly aligns with the view that the president made a relatively safe choice.

Higgins added that the prevailing impression is that Warsh is not fully under presidential influence and is unlikely to undermine Federal Reserve independence or intensify concerns about currency depreciation.

Sanae Takaichi

Japanese Prime Minister Sanae Takaichi said on Saturday that a weak yen has positive aspects, in comments that appeared to contrast with repeated Finance Ministry warnings about possible intervention to support the currency.

In a campaign speech ahead of next week’s election, Takaichi said that despite criticism of yen weakness, it represents a valuable opportunity for export sectors from food industries to automobiles, noting that currency depreciation has acted as a buffer against US tariffs and provided tangible support to the economy.

A poll by Asahi newspaper showed Takaichi’s ruling party is likely to secure a strong victory in the upcoming lower house elections.

Japanese interest rates

Market pricing for a quarter-point rate hike by the Bank of Japan at the March meeting is currently below 10%.

To reprice those expectations, investors are waiting for more Japanese data on inflation, unemployment, and wages.

Yen outlook

Tony Sycamore, market analyst at IG, said the snap election on February 8 is likely to be the next key domestic catalyst for the yen.

He added that a Liberal Democratic Party majority win could push USD/JPY toward 160, while a coalition outcome could keep the pair near the 155.00 level, depending on the coalition partners.