CME Raises Gold and Silver Margin Requirements After Record Single Day Plunges

CME Group announced higher margin requirements for gold and silver futures following the sharpest single day declines in decades, aiming to reinforce market stability. 

Margin Changes for Gold and Silver Futures 

Effective Monday, margin for gold contracts under a non heightened risk profile rises to 8% of contract value, up from 6%.  

Positions classified as heightened risk will now require 8.8%, up from 6.6%. Silver contracts see a larger shift: non heightened risk margins increase to 15% from 11%, while heightened risk margins move to 16.5% from 12.1%. 

Impact on Traders and Market Stability 

The higher collateral demands mean traders must post additional funds to maintain open positions in gold, silver, platinum and palladium futures.  

Smaller participants with limited capital may find it more difficult to stay active, while the move is intended to curb excessive leverage and reduce the risk of rapid liquidations. 

Read More: CME Raises Copper Futures Margins By 20% After Global Prices Hit Record High! 

Adjustments for Platinum and Palladium Futures 

Alongside gold and silver, CME also raised margin levels for platinum and palladium contracts, reflecting broader volatility across precious metals markets. 

Recent Price Movements in Precious Metals 

Spot silver fell 28% to $85 per troy ounce after reaching a record $121.60 earlier in the week. On the MCX, silver March futures dropped 27% or Rs 1,07,968 in a single session, pushing prices below Rs 3,00,000.  

Gold prices reversed 4.7% to $5,143.40 per ounce, and MCX gold February futures fell 12% or Rs 20,514, marking the worst one day fall since March 2013 when the market slipped 9%. 

Conclusion 

CME’s margin increase for gold and silver futures responds to extreme price swings, raising collateral requirements to support orderly trading. Similar adjustments for other precious metals aim to mitigate risk across the sector. 

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