In the biggest hike in more than two and a half years, the CME Group raised margins on gold futures by around 27% Wednesday, at the same time gold futures fell more than $100
Posted: Thursday , 25 Aug 2011
The CME Group (CME.O: Quote) on Wednesday raised margins on gold futures by about 27 percent, the biggest hike in more than two and a half years and the second increase in a month.
The margin increase came as gold futures fell more than $100 on Wednesday in one of the steepest falls ever, as strong U.S. economic data and expectations of more Federal Reserve stimulus accelerated profit taking from the safe-haven's record high on Tuesday.
The hike in maintenance margins, typical in times of market turbulence, coincided with the liquidation of gold futures by investors anticipating a third round of government bond buying, or quantitative easing.
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