London-listed precious metals and miners tumble on CME margin requirement increase

Shares of UK‑listed precious metals and mining companies decline as CME's margin hike weighs on gold and silver prices, pressuring the sector

After a record 2025, the UK precious metals & mining index .FTNMX551030 has slipped for three consecutive sessions so far, following a collapse in metals prices last week that was triggered by Kevin Warsh's nomination as the next U.S. Federal Reserve chair

Increase in margin requirements is generally negative for affected contracts, as higher capital outlay can dampen speculative participation, reduce liquidity and pressure traders to unwind positions

Shares of Fresnillo FRES.L tumble 6%, stock among top losers in the FTSE 100 Index .FTSE, which is down 0.23%

Shares of Pan African PAFR.L slump 7.4%, Endeavour Mining EDV.L dips 6.7% & Hothschild Mining HOCM.L drops 6.8%, reflecting weaker sentiment in the precious metals & mining sector

Analysts at Barclays say gold's pullback reflects "stretched positioning" and technical factors, though strong central bank demand and inflation concerns continue to support its long-term fundamentals