NEW YORK (AP) — Silver and gold futures fell sharply Monday after the Chicago Mercantile Exchange, one of the world’s largest trading floors for commodities, asked traders to put up more cash to make bets on precious metals with prices surging this year.
This year, gold futures are up 65% and silver has more than doubled.
The CME raised margin requirements for gold, silver and other metals in a notice posted to the exchange's website Friday. These notices require traders to put up more cash on their bets in order to insure against the possibility that the trader will default when they take delivery of the contract.
Exchanges sometimes boost margin requirements when a commodity or other security goes on a significant run. In its notice, the CME said it was raising margin requirements “per the normal review of market volatility.”
Silver futures tumbled 8% early Monday while gold slid 5%
Silver prices have skyrocketed this year, topping records dating back to the early 1980s when traders tried and failed to corner the silver market. Supplies have dwindled, with production at major mines slowing. At the same time there's been an increased industrial need for silver for solar panels as well as data centers.
Silver futures were roughly $30 an ounce at the beginning of 2025, and briefly touched $80 an ounce before the CME's announcement.
Gold futures have risen due in part to geopolitical uncertainty and fears that a bubble is forming in some stock markets.
The new requirements for traders dragged down almost all major goldminers as well on Monday. Newmont, the world's largest goldminer, was the biggest decliner on the S&P 500, falling 6%. Smaller goldminers like Vista and Anglogold and Gold Fields, fell even more sharply. .
FILE - An employee of Pro Aurum gold house lifts 1 Kg silver bars of 999.9 purity besides 1 Kg gold bars in the safe deposit boxes room in Munich, Germany, Friday, April 25, 2025. (AP Photo/Matthias Schrader, File)
A potent winter storm brought blizzard conditions, treacherous travel and power outages in parts of the Upper Midwest on Monday as other areas of the country experienced plunging temperatures, strong winds and a mix of snow, ice, and rain.
The snow and strengthening winds began spreading Sunday across the northern Plains, where the National Weather Service warned of whiteout conditions and blizzard conditions that could make travel impossible in some areas. The wind and snow created “a pretty significant system for even this part of the country,” said Cody Snell, a meteorologist with the Weather Prediction Center.
A strong area of low pressure tracking from the Great Lakes into southeast Canada was bringing snow to parts of Michigan on Monday, he said. Powerful winds and heavy lake effect snow were expected across the Great Lakes into New York, and rain and a wintry mix in the northeast.
This storm system could be considered a bomb cyclone since it rapidly deepened from the Midwest into the Great Lakes, Snell said. Storm intensity is measured by central pressure, so the lower the pressure, the stronger the storm.
The very strong cold front meant parts of the central U.S. woke up Monday to temperatures up to 50 degrees F (28 degrees C) colder than a day earlier, according to the Weather Prediction Center. The winds brought “dangerous wind chills” that were expected to drop as low as minus 30 F (minus 34 C) in North Dakota and into Minnesota into Monday.
Blizzard conditions eased in northern Iowa, but high winds blowing fallen snow kept more than 200 miles of Interstate 35 closed Monday as state troopers reported dozens of crashes during the storm, including one that killed a person.
Snowfall in Michigan’s Upper Peninsula ranged from 19 to 24 inches (48 to 61 centimeters), said Ryan Metzger, a National Weather Service meteorologist. More snow is expected in the coming days, but it will be “much lighter, a little bit here or there,” he said. “Nothing like what we had overnight.”
In New England, there were reports of freezing rain in parts of northern New York with that threat extending into Vermont, New Hampshire and Maine, Snell said, noting that it can put a strain on power lines and trees.
In California, the weather service warned that moderate-to-strong Santa Ana winds were expected in Los Angeles and Ventura counties through Tuesday, with a high risk for downed trees due to soaked soils. Recent powerful storms brought the wettest Christmas season to Southern California in years. Two more storms are likely later this week, with forecasters warning that rain on New Year’s Day could soak the Rose Parade in Pasadena for the first time in two decades.
Nationwide more than 350,000 customers were in the dark Monday morning, with about a third of those power outages in Michigan, according to Poweroutage.us. There were more than 3,500 flight delays and more than 600 cancellations at U.S. airports on Monday, according to the flight tracking site FlightAware.
An EF1 tornado with estimated peak winds of 98 mph (158 kph)touched down in Illinois' Tazewell County on Sunday morning, destroying two outbuildings and snapping off numerous trees and power poles, according to the weather service’s office in Lincoln, Illinois. On Monday, the office was surveying damage in Macon County after severe thunderstorms moved through the area on Sunday.
Most of Michigan’s Upper Peninsula was under a blizzard warning Monday morning, according to the weather service with wind gusts of up to 60 mph (96 kph) expected along parts of the southern shore of Lake Superior. Blizzard conditions continued in some parts of northern Iowa on Monday morning.
Forecasters warned of 1 to 3 feet (about 30 to 91 centimeters) of lake-effect snow from Monday through Thursday and high winds, with gusts up to 75 mph (121 kph), in western New York on Monday. Similar conditions were expected along Lake Erie in Michigan and Ohio.
In the South, meteorologists warned severe thunderstorms are likely to signal the arrival of a sharp cold front — bringing a sudden drop in temperatures and strong north winds that will abruptly end days of record warmth throughout that region. The colder temperatures in the South are expected to persist through New Year’s Day.
The storm is expected to intensify as it moves east, drawing energy from a sharp clash between frigid air plunging south from Canada and unusually warm air that has lingered across the southern United States, according to the National Weather Service.
FILE - An American Airlines plane arrives at the O'Hare International Airport in Chicago, Sunday, Nov. 30, 2025. (AP Photo/Nam Y. Huh, File)
People cross 7th street in the heavy snow on Sunday Dec. 28, 2025 in downtown Minneapolis. (Jerry Holt /Star Tribune via AP)
Devon Jordan, of Brainerd , helps a person start their car durning heavy snow fall on Sunday, Dec. 28, 2025 in downtown Minneapolis. (Jerry Holt /Star Tribune via AP)
Heavy snow falls along Nicollet Mall Sunday Dec.28, 2025 in Minneapolis. (Jerry Holt /Star Tribune via AP)
