Barrick Gold CEO and President Mark Bristow on why gold and precious metals have rallied in recent weeks.
CME Group Inc. raised margin requirements for gold and silver futures a day after their sharpest selloff in five months.
Increasing volatility means that investors may experience greater fluctuations in the size of their accounts, and higher margin requirements help the exchange’s clearinghouse ensure that trading obligations are met.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| GLD | SPDR GOUDDEAKS TRUST – EUR ACC | 181.22 | +1.28 | + 0.71% |
| SLV | ISHARES SILVER TRUST | 23.89 | +0.56 | + 2.38% |
Gold speculators must pay an initial margin requirement of $ 10,230 to open a position in a contract and $ 9,300 to maintain that position, up from $ 9,570 and $ 8,700, respectively. Hedgers and members are required to meet initial margin and maintenance margin requirements of $ 9,300, up from $ 8,700.
Meanwhile, silver speculators have to pay an initial margin requirement of $ 14,575 and a maintenance margin of $ 13,250. Hedgers and members must pay start-up and maintenance margins of $ 13,250.
Margin requirements are greater for silver than for gold because of the notoriously volatile nature of its price due to lower liquidity and its dynamics in supply and demand.
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Pre-month Comex gold futures fell $ 9.80, or 4.91%, to $ 1,932.60 an ounce on Tuesday, while pre-month Comex silver futures fell $ 3,212, or 11%, to $ 26,037 in unce. Both drops were the largest on a percentage basis since mid-March.
