CME Group Increases Gold Contract Margin Requirements 9.6%

The CME Group is looking to slow the rise in gold futures yet again. For the third time in a month, the operator of the Comex exchange is raising margin and maintenance requirements for those of whom trade in gold contracts.

Previously set at $9,185, trades of the Comex 100 Gold Futures (GC) will now require $10,065 in margin in a traders account before the contract can be opened. Likewise, the maintenance figure, previously set at $8,350, has now increased to $9,150 as the exchange looks to slow volatility seen in the precious metal.

Both figures rose 9.6%, as compared to the previous increase of 19.3% enacted on March 25.

The new rates will be effective after the close of business on Tuesday, April 14.

The new requirements for gold futures comes as the CME Group looks to reduce volatility across a number of commodities, which range from block cheese, to lean hog, to platinum/palladium. The full list of increased margin and maintenance requirements going into effect as of April 14 can be found here.

The spot price of gold last traded at $1,715.80, while gold futures last touched $1,769.00.

Information for this briefing was found via the CME Group. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Jay Lutz

As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.