CME Group has decided to lower margins for gold, silver and copper futures.
“The new margins, announced late Thursday, will go into effect after the close of business on Friday, CME Group said. The changes were the result of ‘the normal review of market volatility to ensure adequate collateral coverage,’ according to the notice,” reports Kitco.
“Margins act as collateral and are a sum of money traders must put up to back futures trades.”
“The notice also includes changes in margins for a number of other markets besides metals, including ethanol, crude oil, gasoline, coal, natural gas and currency futures.”
US gold bullion saw the biggest price decline of the day, dropping 2.5 percent to close on Thursday, November 21. Chinese gold bullion ended the day, after the 2.1 percent drop yesterday. Indian gold bullion closed 1.4 percent lower. Japanese gold bullion finished the day up 0.3 percent.
US silver finished the day down 2.4 percent. Indian silver fell 2.2 percent on Thursday. The price of Chinese silver fell 1.3 percent. Japanese silver gained 0.6 percent to finish.
US platinum bar prices saw a 1.6 percent decline. The price of Chinese platinum bar declined 1.0 percent. The price of Japanese platinum bar is back up, rising by 0.4 percent on Thursday.
Following a two-day drop, the price of Japanese palladium bar increased by 1.3 percent. US palladium bar ended the day, after the 1.1 percent drop yesterday. Chinese palladium bar finished the day down 0.6 percent.