In response to the recent sharp decline in precious metal prices, the Chicago Mercantile Exchange (CME) announced a significant increase in margin requirements for gold and silver futures. This decision is expected to significantly impact leveraged trading activities.
Gold Margin Requirements Raised
Under the new regulations, gold futures margins for non-high risk accounts will increase from 6% to 8% of the contract value, while high-risk accounts will see an increase from 6.6% to 8.8%.
Silver Futures Margin Surpasses 15%
The margin requirements for silver futures saw an even more significant increase, with non-high risk accounts rising from 11% to 15%, and high-risk accounts increasing from 12.1% to 16.5%.
Platinum and Palladium Adjustments
In addition to gold and silver, platinum and palladium futures will also see margin adjustments. The changes will take effect after market close on Monday, potentially affecting market liquidity.
- Gold Margin: 6% → 8%
- High-Risk Gold: 6.6% → 8.8%
- Silver Margin: 11% → 15%
- High-Risk Silver: 12.1% → 16.5%
Market analysts suggest the margin increase will likely prompt more cautious trading behavior while potentially influencing short-term price movements in precious metals.