CME Group Raises Margins on Precious Metals After Price Volatility
CME Group has increased margin requirements for gold, silver, platinum, and palladium futures following a sharp decline in prices. Gold margins rise to 8% from 6% for standard accounts, while silver jumps to 15% from 11%. The adjustments, effective after Monday's close, aim to bolster collateral coverage amid heightened market turbulence.
Traders now face steeper cash commitments to maintain positions—a MOVE that may squeeze smaller participants. The margin hike compounds pressure on metals markets after Friday's selloff, which triggered widespread liquidations. CME had already tightened terms earlier in the week when prices rallied, demonstrating its reactive approach to volatility in both directions.