The CME Group announced a raise in gold margin requirements after the closing bell today. Maintenance margins for trading COMEX 100-ounce gold futures will increase by 27%, effective after the close of business 8/25/11. The first raise by CME occurred on 8/10/11 effective 8/11/11 and that margin raise was 22% resulting in an approximate $93 loss in gold price.
The Shanghai Gold Exchange and Hong Kong Mercantile Exchange raised margins on various gold contracts this month as well. Gold price dropped approximately $100 today prior to the CME gold margin hike this evening. Further down side pressure on gold would be anticipated. Reference Keystone's gold chart from this morning as well as other gold charts and commentary over the last two weeks. CME orchestrated a 35% silver slap down in April thru margin raises. Raising margin requirements serves to force speculators out of the market.
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