CHICAGO(BullionStreet): The CME Group Inc, parent company of the main metals and energy exchanges in the United States, raised the collateral requirements for trading in benchmark gold, silver and other precious-metals futures contracts.
Collateral, or margin, to trade benchmark Comex 100-troy-ounce gold futures will be increased by 19%, and the margin to trade silver will rise 18%.
Analysts said savage sell off by traders due to crash in gold and silver prices prompted the exchange operator to increase the amount of money investors need to trade gold contracts.
The CME also raised the margin to trade palladium by 14%, and for platinum by 19%.
Margin increases tend to be implemented during times of market turbulence.The increases are effective at the close of business Tuesday.
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