Monday, April 15, 2013

DAN NORCINI: CME Raising Gold and Silver Margins

http://traderdannorcini.blogspot.com/2013/04/cme-raising-gold-and-silver-margins.html

CME Raising Gold and Silver Margins

It was just a matter of time before this occurred but coming at this time,it tends to feed into the margin related selling as those specs who are still long from higher levels and have been holding out by refusing to sell while they wait for the market to bottom are now going to be under even more pressure, particularly if this market does not find a bottom very soon.

Here are the new margins, effective as of the close of trading tomorrow (Tuesday). These rates are for speculators.... bona fide hedgers have a new margin rate the same as the maintenance rate for the specs.


Gold:

Old Margin     Old Maintenance      New Margin    New Maintenance

$5,940            $5,400                    $7,040        $6,400

Silver:

$10,450           $9,500                    $12,375  
     $11,250

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