Precious Metals Hit the Brakes as CME Tightens Futures Requirements

The commodity market just witnessed a notable correction across precious metals, triggered by the Chicago Mercantile Exchange’s move to increase margin requirements on futures contracts. According to market reports, the margin hike sent shockwaves through the sector, forcing positions to unwind and prices to surrender gains.

Silver Under Pressure

New York silver futures took the hardest hit, sliding more than 9% in a single session and breaking below the $71 per ounce mark. The carnage extended to spot silver markets, where prices tumbled by approximately $5, settling at $71.14 per ounce. This represents a significant retreat from intraday peaks and signals growing pressure on the white metal.

Gold, Palladium, and Platinum Follow Suit

Spot gold pulled back $50 from its session high, now trading around $4,323 per ounce, reflecting a more moderate but still notable decline. Palladium fared somewhat better initially but still posted a 7% loss, now valued at $1,507 per ounce. Platinum bore the brunt of the selloff beyond silver, plummeting over 12% to land at $1,962 per ounce.

What’s Next for Precious Metals?

The margin increase typically signals exchange concerns about volatility and leverage, a move that often precedes sideways trading or consolidation phases. Traders holding leveraged positions were forced to liquidate, amplifying the downside move across precious metals broadly. Market participants are now watching to see if this correction marks a temporary pullback or the beginning of a longer-term consolidation phase.