The CME Group raised margin requirements across precious metals in a stepped programme carried out, aiming to curb leverage after rapid price surges. The moves forced rapid position adjustments, produced large intraday price swings and signalled a structural shift in how the exchange manages futures risk.
CME implemented the increases in a phased sequence at the end of 2025. On december silver margins were raised by about 10%. On 29 dec. a further roughly 25% increase took the initial margin for March 2026 silver futures from about $20.000 to $25.000 per 5.000-ounce contract. Days later, the exchange applied an additional 30% uplift that pushed the total initial requirement to about $32.500 per 5.000-ounce contract and lifted gold maintenance margins from $20.000 to $22.000 (a 10% rise).
The CME switched its margin methodology for gold, silver, platinum and palladium futures from fixed dollar amounts to percentages of notional value. Under the new framework gold margins were set at 5% and silver at 9% of the notional, a change that directly links capital charges to contract value rather than a static dollar buffer.
The adjustments, described by the exchange as a “normal review of market volatility,” moved margins away from fixed dollar amounts and set new percentage-based rules for gold and silver futures, altering capital needs for traders and clearing participants.
The market reaction following the changes implemented by CME
The margin hikes produced immediate stress. Silver posted an 11% intraday drop, its largest one-day fall since 2021, and fell about 17%. Front-month Comex gold futures fell 4.5% to $4.325,10 per ounce on the same day. Elevated capital demands forced some highly leveraged traders to inject funds or liquidate positions, accelerating sell-offs and producing forced liquidations across the complex.
Mining equities reflected the shock: major gold and silver stocks declined in the low double-digits, with reported falls between 5,6% and 12,4%. Market participants described the measures as a deliberate attempt to “shake out” over-leveraged positions and restore orderly price discovery.
Analysts were split. Ajay Kedia of Kedia Commodities anticipated a potential 10% correction in silver linked to the margin changes, while some institutions continued to project higher long-term targets for precious metals. These forecasts were reported alongside the exchange’s moves and reflect a mix of tactical and structural views on demand and supply.
Investors are now turning their attention to March 2026 futures and early-2026 trading volumes, which will test whether liquidity under the new percentage-based regime is durable and whether the market can absorb shifts in leverage without renewed disorder.
