De-dollarization and CME margin adjustments generate volatility in gold and silver

Analysts point out that the price correction in gold and silver is mainly due to adjustments in CME margin rules, which triggered a cascade of liquidations and margin calls. This mechanism caused a temporary liquidity crisis and short-term price distortions, similar to what was observed during the March 2020 debacle, rather than signaling the start of a structural bear market.

Margin adjustments that caused liquidity crises

Changes in CME leverage requirements acted as a trigger for massive stop-loss losses. This situation reveals how technical adjustments on trading platforms can amplify temporary volatility, even without reflecting fundamental changes in the underlying assets. Once deleveraging normalizes, prices are expected to realign with their true fundamentals.

Long-term fundamentals support de-dollarization in precious metals

Despite recent volatility, the structural factors backing precious metals remain intact. Geopolitical tensions, increasing US fiscal pressure (debt exceeding $40 trillion), the global trend toward de-dollarization, and sustained gold purchases by central banks continue to be solid. Industrial demand for silver also remains robust, forming a demand floor that supports prices in the long term.

Expected recovery after leverage normalization

Analysts characterize this movement as a phase of technical correction and deleveraging within a prolonged bull market, rather than its end. De-dollarization as a global megatrend will continue to drive demand for these metals, especially in economies seeking to diversify their reserves. Once excess leverage is corrected, an upward trend is expected to resume, with prices aligned with the macroeconomic cycle and the global monetary transition.