CME changes margin-setting methodology for precious metals

US exchange operator CME Group announced on Monday that it is changing the way it sets margins for precious metals to ensure adequate collateral coverage in view of the current market volatility.

As of January 13, the CME will set margins for gold, silver, platinum and palladium based on a percentage of contract value, it said in a notice. The margins were previously based on dollar amounts.

Margins represent the deposits made by investors in futures markets to cover the risk of default. Typically, exchanges increase margin requirements in response to elevated price volatility.

Precious metals prices have seen rapid fluctuations since last year with gold, silver and platinum setting a string of record highs.

Gold powered above the historic $4,600-an-ounce mark on Monday, building on the bullish momentum driven by a mix of safe-haven demand, bets on US rate cuts, robust central-bank buying, de-dollarization trends, and ETF buying. The metal surged almost 65% in 2025, its biggest annual rise since 1979.

Silver and platinum prices also more than doubled last year, with both metals bolstered by multiple factors including physical market shortages and increasing industrial demand.

Palladium ended 2025 up 76%, its biggest gain in 15 years.

As per the latest notice, CME has set the COMEX 100 Gold Futures initial margins at 5%, while COMEX 5000 Silver and Platinum Futures NYMEX are at 9%. Margins for Palladium Futures NYMEX are set at 11%.

(By Swati Verma; Editing by Mrigank Dhaniwala)