CME Group Hikes Comex Gold Margins Again, Cuts Palladium Margins

New York (July 1)  CME Group is hiking margins for Comex gold futures for the second time in a week, while the margin for Nymex palladium futures will decline, the exchange operator announced late Thursday.

As of the close of business on Friday, the margin for new speculative positions in the main Comex 100-ounce gold contact will rise to $6,600 from $6,050. As of a week ago, before an increase that went into effect on Monday, this margin had stood at $4,950.

The maintenance margin for existing speculative, plus all hedge positions, will rise to $6,000 from $5,500. As of a week ago, this stood at $4,500.

Meanwhile, for Nymex palladium futures, the margin for new speculative positions will decline to $3,850 from $4,620. The maintenance margin for existing speculative positions, plus all hedge positions, will fall to $3,500 from $4,200.

Margins act as collateral on trades in the futures market. CME Group said the changes were “per the normal review of market volatility to ensure adequate collateral coverage.”

CME Group also changed margins for a number of other markets, including increases for cocoa, soybeans and Japanese yen futures. A link to the complete notice can be seen right here.

Source: KitcoNews