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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
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