CME Group (CME) Boosts Margin Requirements on Gold, Platinum Futures
Tweet
Share
E-mailGet Alerts CME Hot Sheet
Price: $240.75 +2.55%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1.6%
EPS Growth %: +1.0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1.6%
EPS Growth %: +1.0%
Join SI Premium – FREE
The CME Group (NYSE: CME) is boosting margin requirements on key precious metals and prices continue to flounder on expectations that QE3 will taper and end sooner than previously expected.
Comex 100-ounce Gold Futures (GC) initial margins for speculators are increasing by 25 percent from $7,040 to $8,800 per contract.
NYMEX Platinum Futures (PL) initial margins are rising 12.5 percent from $3,080 to $3,465 per contract.
Year-to-date, gold prices have dropped about 23 percent on the year as investors begin to question its value and expectation of a stronger dollar might curb investment from outside investors. Earlier this week, Fed chairman Ben Bernanke hinted that its $85 billion per month bond buying program might ease by the end of the year and cease by the middle of 2014. Previous comments had easing measures continuing through the end of 2014.
Gold futres recently settled near the lowest levels since September 2010.
Traders will be keeping an eye on ETFS Physical Platinum Shares (NYSE: PPLT), SPDR Gold Shares (NYSE: GLD), iShares Gold Trust (NYSE: IAU), Sprott Physical Platinum and Palladium Trust (NYSE: SPPP), and UBS E-TRACS Long Platinum TR ETN (NYSE: PTM), among other funds and stocks tied to the metals.
Comex 100-ounce Gold Futures (GC) initial margins for speculators are increasing by 25 percent from $7,040 to $8,800 per contract.
NYMEX Platinum Futures (PL) initial margins are rising 12.5 percent from $3,080 to $3,465 per contract.
Year-to-date, gold prices have dropped about 23 percent on the year as investors begin to question its value and expectation of a stronger dollar might curb investment from outside investors. Earlier this week, Fed chairman Ben Bernanke hinted that its $85 billion per month bond buying program might ease by the end of the year and cease by the middle of 2014. Previous comments had easing measures continuing through the end of 2014.
Gold futres recently settled near the lowest levels since September 2010.
Traders will be keeping an eye on ETFS Physical Platinum Shares (NYSE: PPLT), SPDR Gold Shares (NYSE: GLD), iShares Gold Trust (NYSE: IAU), Sprott Physical Platinum and Palladium Trust (NYSE: SPPP), and UBS E-TRACS Long Platinum TR ETN (NYSE: PTM), among other funds and stocks tied to the metals.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- CME Group (CME) call put ratio 2 calls to 1 put with a focus on September 230 calls
- Oil gains after vessels attacked near Strait of Hormuz
- Oil gains on short-covering buys ahead of US holiday
Create E-mail Alert Related Categories
Commodities, ETFs, Trader TalkRelated Entities
UBS, Ben S. BernankeSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
