CME Increases Gold-Silver Margins, Aiming to Mitigate Risks in Mid-Volatility
Jakarta, Friday (February 6, 2026) — The CME Group, through its clearing unit (CME Clearing), has again increased margin/performance bond requirements for precious metals contracts, amidst continued sharp price volatility in gold and silver. In its latest advisory on Thursday, February 5, 2026, CME stated that the new rates will take effect after the close of trading on Friday, February 6, 2026.
For COMEX 100 Gold Futures (GC), the initial margin requirement is increased from 8% to 9% (with the higher risk account/HRP category). Meanwhile, for COMEX 5000 Silver Futures (SI), the initial margin requirement is increased from 15% to 18%.
This measure is not essentially a "punishment" for traders, but rather a risk management mechanism. CME explains that performance bonds/margins are deposits held at CME Clearing to ensure clearing members can meet their obligations to clients and the clearinghouse. The size will be adjusted based on the product and market volatility.
In extreme market conditions, the purpose of margin increases becomes very clear: to ensure sufficient collateral to cover potential daily losses, reduce the risk of default, and mitigate the domino effect if a party is unable to meet a margin call. The CME itself stated that the adjustments were made as part of a "normal review" of volatility to ensure adequate collateral.
In terms of market impact, higher margins typically discourage speculative participation and discourage position reduction due to the sudden surge in capital requirements. Reuters also emphasizes that margin increases are generally negative for the related contracts, as "required capital" increases, liquidity can decrease, and traders are encouraged to unwind positions.
This is why, during a "sell-off" phase, precious metals sometimes continue to fall despite supposedly supportive factors (e.g., weak economic data). When volatility is high, many market participants no longer trade based on the "fundamental story," but instead sell assets that are still salable to meet margin calls elsewhere—a classic "sell-to-meet-margin" phenomenon.
The market was also shaken by a combination of global risk-off sentiment and changing US interest rate expectations, which strengthened the dollar and put pressure on dollar-denominated commodities. Several Reuters reports cited the CME margin hike as a factor accelerating selling pressure in gold and silver amidst the pre-existing turmoil.
Ultimately, margin hikes act as an "emergency brake" for system stability: protecting clearinghouses and the clearing ecosystem, although their short-term effects are often uncomfortable for the market, triggering deleveraging and additional volatility. (asd)
Source: Newsmaker.id
