The CME Group, which operates the Comex and the Nymex, said late Thursday it will reduce margins for gold, silver and platinum futures, effective Monday. (See related story)
Gero said normally the reduction in margin would have helped lift prices, but given the change of heart by the eurozone officials, the supportive news regarding margins was diminished.
Gero said the reduction in margin means the exchange feels the volatility that prompted the previous rise in margins has eased somewhat. “Margins have to do with volatility. It’s insurance for the buyer and the seller,” he said.
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