1India’s commodity exchanges just gave bullion traders some breathing room.
Multi Commodity Exchange of India (MCX) and National Stock Exchange of India (NSE) have withdrawn the additional margins on gold and silver futures, effective Feb 19.
Earlier this month, exchanges had imposed:
• +3% extra margin on gold futures
• +7% extra margin on silver futures
The move came after gold surged nearly 35% in January, triggering volatility concerns. Since then, prices have cooled about 15%, and conditions have stabilized.
Now, with volatility easing, lower margins mean:
✔️ Reduced capital requirements
✔️ Improved liquidity
✔️ Better participation from hedgers and traders
Globally, exchanges have been actively adjusting margins in response to sharp price swings — including recent hikes by CME Group on Comex metals.
Bullion volatility is cooling — but participation could heat up again.
