EDITOR'S NOTE: Catch the all new Kitco.com Market Data and Bitcoin sections!

CME Group Reducing Margins For Gold, Silver, Platinum

By Kitco News
Friday April 4, 2014 7:44 AM

(Kitco News) - CME Group is lowering margins for gold, silver and platinum futures as of the close of business on Friday.

The exchange operator, in a notice issued late Thursday, said the changes are “per the normal review of market volatility to ensure adequate collateral coverage.” Margins act as collateral for a trade in a futures contract.

The “initial” margin to establish new speculative positions in the main Comex 100-ounce gold futures contract will decline to $7,150 from $7,975. The “maintenance” margin for existing speculative positions, as well as all hedge positions, will decline to $6,500 from $7,250.

For the main Comex 5,000-ounce silver contract, the initial margin for speculators will drop to $9,900 from $11,000. The maintenance margin for speculative accounts, as well as all hedge positions, will be reduced to $9,000 from $10,000.

Meanwhile, the initial margin for speculators in the Nymex platinum contracts will drop to $2,750 from $3,025. The maintenance margin for speculative accounts, as well as all hedge positions, will decline to $2,500 from $2,750.

CME Group is also lowering the margins for the smaller-sized gold and silver contracts. In addition, changes in margins were announced for a number of other markets, including coal, crude oil, ethanol, iron ore, hot rolled steel and freight.

The full CME Group notice can be viewed at this link.

By Allen Sykora of Kitco News; asykora@kitco.com

 

 

Disclaimer: The views 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 accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
kitco news

Precious Metal Charts

Click to see this Precious Metal chart
  1. 24h
  2. 30D
  3. 60D
  4. 6M
  5. 1Y
 

Interactive Chart