Comex Gold Futures Margins Raised By CME, But Won't Affect Gold Prices Soaring Over $2,000

Aug. 11, 2011 - PRLog -- CME Group is increasing margin specifications by 22.2% for investing gold futures on the Comex Division of the New York Mercantile Exchange. In the exact same announcement, CME Group stated additionally, it is hiking margins for a number of U.S. interest-rate products, such as 10-year notes, as well as some currency and stock-index futures contracts. The brand new prices will probably be effective following the close of business on Thursday. Read more at http://silver-dollar-values.com

For that complete 100-ounce gold agreement, the “initial” margin for new positions will rise to $7,425 for investors from $6,075. Speculators’ “maintenance” margins for current positions, as well as all hedge positions, will rise to $5,500 from $4,500. Margins will also be increasing for smaller size gold contracts.

CME Group stated the margin hikes had been part of the “normal evaluation of marketplace volatility to make sure sufficient collateral protection.” Margins, or even the collateral traders should up front to trade extremely leveraged futures contracts, usually rise as price volatility rises. http://www.silver-dollar-values.net

Futures traders are already speculating recently that margin hikes in gold may be coming since volatility elevated in current investing days. The assortment for that Comex December agreement around the last two business days was $60.80 and $64.80 an ounce. Gold prices ongoing to trade near to record highs in Asia on Thursday, in spite of the Chicago Mercantile Exchange's (CME) choice to hike investing margins. A number of analysts mentioned the CME's shift would not stop the rally in gold bullion. Today would be an excellent time to purchase precious metals - silver and gold - while the prices are nonetheless fairly inexpensive. Visit http://www.silver-dollar-values.com for more profitable silver and gold tips.

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