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Same as what happened to silver.
Rerack, reset.
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http://www.bloomberg.com/news/2011-0...s-margins.html
Rerack, reset.
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CME raised margin requirements after gold futures surged to a record above $1,910 an ounce this week and then plunged the most since March 2008. The metal declined yesterday on speculation financial markets may be stabilizing after reports on durable-goods orders and home prices beat analyst estimates. Global equities climbed to a one-week high today.
“The stock market is going up, and the correction in gold that we saw might have a bit more to go,” Jesper Dannesboe, an analyst at Societe Generale SA in London, said today by phone. “When prices have been more volatile, margins go up, and that may be adding” pressure on bullion, he said.
Immediate-delivery gold declined $30.35, or 1.7 percent, to $1,728.97 an ounce by 9:51 a.m. in London. It fell 3.8 percent yesterday after touching a record $1,913.50 on Aug. 23. The metal for December delivery was down 1.5 percent at $1,731.30 on the Comex in New York. Futures, which reached an all-time high of $1,917.90 on Aug. 23, tumbled 5.6 percent yesterday.
Bullion is in the 11th year of a bull market, the longest winning streak since at least 1920 in London, as investors seek to diversify away from equities and some currencies. Exchange- traded-product holdings fell for a fourth day yesterday and the most since January, sliding 26.9 metric tons to 2,154.7 tons, data compiled by Bloomberg show. Assets reached a record 2,216.8 tons on Aug. 8.
Maintenance Margin
The minimum cash deposit for borrowing from brokers to trade gold futures will rise 27 percent to $9,450 per 100-ounce contract in the speculative Tier 1 category at the close of trading today, CME said. The maintenance margin will rise to $7,000 from $5,500. The Shanghai Gold Exchange said Aug. 23 it will hike margins from settlement today.
The 10-day historical volatility for gold futures jumped to 40 percent, the highest level since March 2009, data compiled by Bloomberg show. Futures have dropped 9.7 percent since setting a record. Silver slumped as much as 35 percent in London in about three weeks from its April 25 record of $49.79 an ounce after CME announced margin increases.
Gold has dropped in “a correction that we have to have,” said Justin Smirk, senior economist at Westpac Institutional Bank, a unit of Australia’s Westpac Banking Corp. “Near term, there’s still a lot of reason for gold to outperform other commodities, because we don’t think that problems are being resolved.”
“The stock market is going up, and the correction in gold that we saw might have a bit more to go,” Jesper Dannesboe, an analyst at Societe Generale SA in London, said today by phone. “When prices have been more volatile, margins go up, and that may be adding” pressure on bullion, he said.
Immediate-delivery gold declined $30.35, or 1.7 percent, to $1,728.97 an ounce by 9:51 a.m. in London. It fell 3.8 percent yesterday after touching a record $1,913.50 on Aug. 23. The metal for December delivery was down 1.5 percent at $1,731.30 on the Comex in New York. Futures, which reached an all-time high of $1,917.90 on Aug. 23, tumbled 5.6 percent yesterday.
Bullion is in the 11th year of a bull market, the longest winning streak since at least 1920 in London, as investors seek to diversify away from equities and some currencies. Exchange- traded-product holdings fell for a fourth day yesterday and the most since January, sliding 26.9 metric tons to 2,154.7 tons, data compiled by Bloomberg show. Assets reached a record 2,216.8 tons on Aug. 8.
Maintenance Margin
The minimum cash deposit for borrowing from brokers to trade gold futures will rise 27 percent to $9,450 per 100-ounce contract in the speculative Tier 1 category at the close of trading today, CME said. The maintenance margin will rise to $7,000 from $5,500. The Shanghai Gold Exchange said Aug. 23 it will hike margins from settlement today.
The 10-day historical volatility for gold futures jumped to 40 percent, the highest level since March 2009, data compiled by Bloomberg show. Futures have dropped 9.7 percent since setting a record. Silver slumped as much as 35 percent in London in about three weeks from its April 25 record of $49.79 an ounce after CME announced margin increases.
Gold has dropped in “a correction that we have to have,” said Justin Smirk, senior economist at Westpac Institutional Bank, a unit of Australia’s Westpac Banking Corp. “Near term, there’s still a lot of reason for gold to outperform other commodities, because we don’t think that problems are being resolved.”
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