Precious metal prices plunge as CME Group raises margin requirements amid record volatility
Precious metal prices fell sharply after CME Group raised margins. The move follows a major gold and silver selloff linked to a new Federal Reserve chair pick.
Insights:
CME Group Inc. announced hikes in margins on its precious metal futures on January 30 and said the changes were set to take effect after market close on Monday. This development has coincided with extreme price volatility in the US 
US, contributing to the reduced attractiveness of speculative positions. Spot gold was 2.3% lower at $4,754.51 per ounce by 1319 GMT on Monday. Earlier in the session, gold had experienced a near 10% fall, following a decline of more than 9.8% on January 30, which was its sharpest one-day drop since 1983.
US, contributing to the reduced attractiveness of speculative positions. Spot gold was 2.3% lower at $4,754.51 per ounce by 1319 GMT on Monday. Earlier in the session, gold had experienced a near 10% fall, following a decline of more than 9.8% on January 30, which was its sharpest one-day drop since 1983.The recent downturn has seen gold decline by about $900 since hitting an all-time high of $5,594.82 on January 29. Despite the spot price pressure, USgold futures for April delivery were up 0.7% at $4,777.70 per ounce. Silver markets have faced similar stress, with spot silver losing 3.8% to $81.41 after a fall of 15% earlier on Monday. This reflects a broader trend for the metal, which has lost about 33% since reaching an all-time peak of $121.64 last week.
