Gold Shifts Lower as CME Raises Margin Requirements
Tweet
Share
E-mail
Get Alerts CME Hot Sheet
Price: $274.52 -1.33%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1.9%
EPS Growth %: +9.3%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1.9%
EPS Growth %: +9.3%
Join SI Premium – FREE
Gold is seeing some selling pressure Thursday morning as CME Group (NYSE: CME) announced an increased margin requirement on futures contracts, effective this morning.
The company raised margin requirements by 22 percent, meaning investors and speculators will now need to keep a minimum of $7,425 on deposit per contract, up from $6,075 prior to the switch. An entire list from the release can be read here.
In addition, the margin for hedging gold increased 22 percent from $4,500 to $5,500 per contract.
With gold down about $21.90 to $1,762.4 per ounce, about 1.2 percent for the session, the news might solidify gold's current role in the market as one of the top ways to hedge long stock positions. Others contend the news hasn't been fully digested, and some might close out positions as the cost to hold gold increases.
Gold hit an all-time high of $1817.6 per ounce on the Comex Wednesday.
The company raised margin requirements by 22 percent, meaning investors and speculators will now need to keep a minimum of $7,425 on deposit per contract, up from $6,075 prior to the switch. An entire list from the release can be read here.
In addition, the margin for hedging gold increased 22 percent from $4,500 to $5,500 per contract.
With gold down about $21.90 to $1,762.4 per ounce, about 1.2 percent for the session, the news might solidify gold's current role in the market as one of the top ways to hedge long stock positions. Others contend the news hasn't been fully digested, and some might close out positions as the cost to hold gold increases.
Gold hit an all-time high of $1817.6 per ounce on the Comex Wednesday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Europe Gas Prices Rise Above €80/mwh For First Time Since 2023 - Bloomberg
- Oil prices jump 4% as fresh US-Iran fighting stokes supply fears
- Oil ends week higher on renewed US-Iran strikes, diesel hits record
Create E-mail Alert Related Categories
Commodities, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
