CME raised margin requirements on Comex gold and silver futures after prices saw their sharpest drops in decades. The decision landed after a violent selloff that wiped out leveraged positions across metals.
Gold and silver both collapsed on Friday as traders rushed to close positions, and margin calls spread fast. The change takes effect from Monday’s close and applies to gold, silver, platinum, and palladium futures.
For traders, the message from CME is blunt. If you want to trade metals in this market, you need more cash upfront. Gold margins for non‑heightened risk profiles rise from 6% to 8% of contract value.
For heightened risk profiles, margins rise from 6.6% to 8.8%. Silver margins jump harder. Non‑heightened risk margins rise from 11% to 15%, while heightened risk margins increase from 12.1% to 16.5%. Platinum and palladium margins also go up.
Margin hikes raise collateral demands after extreme volatility
The margin increase follows what CME described as a normal review of market volatility to ensure enough collateral coverage. The exchange often raises margins when prices swing hard, whether up or down.
This time, the timing adds pressure. Smaller traders now face higher cash requirements just days after heavy losses.
Earlier in the week, CME had already raised margins on silver, platinum, and palladium futures after prices ran higher. Friday’s update expands that tightening.
Anyone trading futures in these metals must now post more collateral to keep positions open and meet obligations. For many smaller accounts, that extra cash may not be available.
Gold and silver prices collapsed on Friday as markets reacted to political news from Washington.President Donald Trump, now serving as the 47th president, nominated Kevin Warsh as the next chair of the Federal Reserve.
The nomination eased concerns about the Fed’s independence and sent the dollar higher. A stronger dollar made gold and silver more expensive for overseas buyers and added pressure to prices.
Spot silver dropped 28% to $83.45 an ounce. Silver futures plunged 31.4% to settle at $78.53, the worst day since March 1980. Spot gold fell about 9% to $4,895.22 an ounce. Gold futures slid 11.4% to $4,745.10.
“This is getting crazy,” said Matt Maley, equity strategist at Miller Tabak. After that first reference, Matt said most of the selling looked forced. He said silver had become a favorite trade for short‑term traders and day traders, which built leverage. When prices collapsed, margin calls followed fast.
Selling pressure grew through U.S. trading hours as investors locked in profits after long rallies. Gold and silver had surged through 2025, with gold up 66% and silver up 135% for the year. The fast gains attracted heavy positioning. When prices turned, exits became crowded.
The dollar index last traded about 0.8% higher, adding pressure. Metals also lost support from the idea that gold and silver could replace the dollar as the world’s reserve currency.
Kevin Hassett, director of the National Economic Council, had been seen as the favorite to replace Jerome Powell.
But prediction markets shifted toward Warsh in recent days. Krishna Guha, vice chairman at Evercore ISI, wrote that markets were trading Warsh as hawkish. After his first mention, Krishna said the pick could help stabilize the dollar and challenge debasement trades, which weighed on metals. He also warned against pushing that trade too far and said Warsh is a pragmatist, not an ideological hawk.
Geopolitics had helped metals earlier in the year. Claudio Wewel, FX strategist at J. Safra Sarasin Sustainable Asset Management, said a perfect storm of tensions pushed prices higher. After his first mention, Claudio pointed to the U.S. capture of Nicolás Maduro and U.S. threats of military force in Greenland and Iran. He said recent speculation about the Fed chair had also influenced metals.
The selloff spread beyond futures. Coeur Mining dropped 17%. The ProShares Ultra Silver ETF fell more than 62%. The iShares Silver Trust ETF lost 31%. Both funds headed for their worst days on record.
Katy Stoves, investment manager at Mattioli Woods, said the drop looked like a market‑wide reassessment of concentration risk. After her first mention, Katy said crowded trades can unwind fast when everyone is positioned the same way.
Toni Meadows, head of investment at BRI Wealth Management, said gold’s run toward $5,000 happened too easily.After his first mention, Toni said central bank buying had supported prices but slowed in recent months.
Toni said reserve diversification remains a theme, especially as Trump’s trade policies and foreign actions make some countries uneasy about holding U.S. assets. Silver, he said, tends to follow gold.
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