Commodities Report: Precious Metals Flow

Demand & Supply Analysis

Hello Traders,

The rally in precious metals has stalled after the CME raised margin requirements twice, tightening liquidity for leveraged traders. Higher margins force position reductions in futures markets, often leading to short-term selling pressure even when the broader trend remains constructive. This move has cooled momentum across gold and silver, turning what was a strong rally into a consolidation phase driven more by positioning and liquidity than by a change in fundamentals.

In this environment, patience is being rewarded. Options flow remains protective, not aggressive, suggesting traders are managing risk rather than chasing prices. When margins rise and liquidity tightens, forced moves tend to overshoot — creating smarter opportunities for those willing to wait rather than react.

This is where demand–supply analysis becomes essential. By identifying where real buyers are likely to step in and where selling pressure may re-emerge, we can separate short-term noise from levels that actually matter. In the next section, we’ll break down the key demand and supply zones to assess where the market may stabilize — and where opportunity could start to form.