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      CME Raises Margin Again; Escalated Volatility in Precious Metals Market Weighs on Gold

      Eva Chen

      Commodity

      Summary:

      On the last trading day of 2025, gold prices edged lower and neared $4,303 during the European session, driven by CME’s second precious metals futures margin hike in a single week.

      Buy

      XAUUSD

      EXP
      Trading

      4328.48

      Entry Price

      4393.00

      TP

      4285.00

      SL

      4319.61 -19.50 -0.45%

      0

      Point

      Flat

      4285.00

      SL

      CLOSING

      4328.48

      Entry Price

      4393.00

      TP

      Fundamentals

      CME stated that it would raise precious metals futures margins for the second time in one week after the market close on Wednesday, against the backdrop of a period of sharp volatility in the precious metals market. In its statement, the exchange announced margin increases for gold, silver, platinum and palladium contracts, noting that the decision was made based on a review of "market volatility to ensure adequate collateral coverage".
      This week, precious metals saw wild swings as they wrapped up a turbulent and historic year. Silver witnessed particularly notable volatility: its futures price surged to an all-time high above $82.00 per ounce earlier on Monday, followed by a sharp pullback. A margin hike means traders are required to post more collateral when trading precious metals futures to ensure they can meet their contractual obligations. The first round of margin increases had already taken effect on Monday.
      CME Raises Margin Again; Escalated Volatility in Precious Metals Market Weighs on Gold_1

      Technical Analysis

      Despite the recent sharp price fluctuations, gold has significantly underperformed silver. For the time being, gold prices are likely to find final support around the key level of $4,319; this support is expected to provide strong backing for a price rebound and lay the groundwork for a subsequent uptrend.
      However, a further break below the critical $4,300 level would signal a deeper correction phase for gold, with the next target set at the 55-day moving average (currently at $4,159). Such a move would also indicate a similar deep pullback in silver prices.

      Trade Recommendations

      Trade Direction: Buy
      Entry Price: 4306
      Target Price: 4393
      Stop Loss: 4285
      Valid Until: 16 January, 2026, 23:55:00
      Support: 4303/4298/4285
      Resistance Levels: 4331/4341/4375
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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