CME Raises Gold Margins

CME Raises Gold Margins

Due to gold’s recent volatility and more importantly, fall in price, the CME has hiked the margin required on gold contracts by 25%.

Seeing as the majority of the gold market is based on CME traded futures contracts with high levels of leverage, raising the margin required to trade during this period of volatility will surely increase the number of margin calls.

More margin calls = more forced selling.

It would appear that gold’s bear market could be just beginning.

The full rundown on margin changes can be found here: CME

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