Precious Metals Plunge Following CME's Leverage Requirement Tightening

2026-01-04 18:34:51

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The precious metals complex experienced a sharp selloff after the Chicago Mercantile Exchange increased margin requirements on futures contracts. This regulatory adjustment triggered widespread liquidations across multiple metal positions.

Market-Wide Pressure

Silver bore the brunt of the selling pressure, with New York silver futures plummeting over 9% to settle below the $71 per ounce mark. Physical silver mirrors this weakness, dropping $5 to approximately $71.14 per ounce as traders exited long positions. Platinum proved the most vulnerable asset in the complex, declining more than 12% to reach $1,962 per ounce. Palladium followed suit with a 7% decline, currently trading near $1,507 per ounce.

Gold’s Retreat

Spot gold also surrendered ground despite its traditional safe-haven appeal. The yellow metal pulled back $50 from intraday highs, now changing hands at $4,323 per ounce. The broader weakness across precious metals reflects the market’s sensitivity to leverage constraints and the forced unwinding of leveraged positions.

This selloff underscores how margin adjustments from major exchanges can trigger cascading price moves across the precious metals complex, particularly impacting more volatile alternatives like platinum and palladium.

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