CME Tightens Margins on Precious Metals Amid Historic Volatility
The CME Group raised margin requirements for gold, silver, platinum, and palladium futures after extreme price swings forced traders to recalibrate risk. The adjustments, effective post-Wednesday close, follow violent rallies and selloffs that left markets reeling—particularly in silver, which saw a record intraday reversal from $84 to $70.
Clearinghouses now demand significantly higher collateral as volatility spikes. Silver margins have surged sixfold since September, with copper also facing increased requirements. The moves reflect a market where traditional hedges are becoming as unpredictable as crypto assets.
Speculative activity exploded across exchanges, including China's spot markets and U.S. venues. Traders who piled into positions during the rally faced brutal liquidations—a reminder that even safe-haven assets now trade with meme-stock ferocity.
