CME slashes gold and silver futures margins

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(Kitco News) – CME cuts bond margins for gold, silver, platinum, etc.

Margin trading is extremely popular, this is when you actually make a deposit to multiply the value of your trades. This means that you never completely need to deposit the full notional value of a gold futures contract to trade it. CME changes these margins overnight to make it easier to trade gold, silver and platinum futures contracts on the stock exchange. There haven’t been too many details released, but the gold margin is down 10% and silver margins are down 9.2%. For gold, there were around 85 changes on the futures curve (different futures dates) and around 88 for silver.

On the intraday chart below, you can see the price was going up long before the news hit the leads. When the official release took place as major publications caught wind of the story, it gave gold futures a second wind to push higher. This morning the momentum continued and $ 1,820 / ounce was shattered. One thing that is clear from the histogram of volumes is that the average European session volume is higher than usual.

Click here to see the CME publication

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to exchange commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

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