CME raises margins for gold as prices drop
Gold prices fall more than 5 per cent to lowest in three years, prompting increase in margins for Comex gold
The CME Group, parent of the Chicago Board of Trade, raised initial margins for Comex gold after prices plunged to their lowest in three years on Thursday.
Gold prices plunged over 5 per cent to the lowest in three years on Thursday, leading a global market rout one day after the US Federal Reserve gave its most explicit signal yet that it plans to wind down the era of easy money.
The exchange operator raised Comex 100 Gold Futures (GC)initial margins for speculators 25 per cent to US$8,800 per contract from US$7,040.
Spot gold hit a low of US$1,276.19 an ounce on Thursday, marking its lowest level since Sept. 21, 2010. US gold hit a low of US$1,275.40.
CME also lifted platinum futures NYMEX (PL) initial margins for speculators by 12.5 per cent to US$3,465 per contract from US$3,080.
Platinum dropped 4.2 per cent to US$1,363.80 an ounce on Thursday. It touched a low of US$1,355.20.