In big news for commodity traders, the Chicago Mercantile Exchange (CME Group) has announced margin cuts on futures contracts of various precious metals. The announcement comes even as oil prices surged past the $107/bbl mark in Friday’s trade.
The CME filing dated April 23 stated that the margins are being reduced as part of a normal review of market volatility to ensure adequate collateral coverage. The new margin requirements come into effect from April 24.
Investor demand for precious metals has taken a hit as spot gold slipped below the $4,700/oz mark, while silver dropped near the $75/oz level.
How much have the margins been reduced?
CME Slashes Precious Metal Margins
New initial margin requirements effective April 24, 2026 | COMEX
New Margin (effective Apr 24)
Old Margin (struck through)
pp = percentage points | HRP = Heightened Risk Profile
Why lower margins? CME cuts margins after reviewing market volatility — lower requirements reduce capital needed to hold a futures position, boosting liquidity and trader participation.
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For COMEX 100 gold futures, the new margin requirement for non-heightened risk profiles (HRP) has been reduced to 6% from the previous 7%. For heightened risk profiles, the margin requirement has been lowered to 6.6% from 7.7%.
As for COMEX 5000 silver futures, the margins have been decreased to 11% from 14% for non-HRPs, while for HRPs, the new initial margin stands at 12.1%, down from the previous 15.4%.
Over the past three months, gold prices have fallen by over 6%, while silver being the more restless metal has fallen by more than 27% during the same period.
Platinum and palladium requirements also reduced
For NYMEX platinum futures, the new margin for non-HRPs is now 11%, cut from the previous 13%, while for HRPs, the new initial is 12.1%, down from the prior 14.3%.
As for NYMEX palladium futures, the new initial requirement for heightened risk profiles is 13.2%, down from 15.4%, while for non-heightened risk profiles, the new initial margin is 12%, down from the previous 14%.
What are margin requirements?
In futures trading, margin requirements essentially mean the minimum amount of capital a trader must pay to hold their position. These are often referred to as performance bond requirements by CME Group, which owns and operates the COMEX exchange.
Margin requirements are set by exchanges to manage market volatility. Lower margins mean you need less capital to maintain a contract. This is often aimed at increasing participation and improving liquidity.
