CME raises margins for gold as prices drop

The CME Group, parent of the Chicago Board of Trade, raised initial margins for Comex gold after prices plunged to their lowest in three years on Thursday.

Gold prices plunged over 5 per cent to the lowest in three years on Thursday, leading a global market rout one day after the US Federal Reserve gave its most explicit signal yet that it plans to wind down the era of easy money.

The exchange operator raised Comex 100 Gold Futures (GC)initial margins for speculators 25 per cent to US$8,800 per contract from US$7,040.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1265689/cme-raises-margins-gold-prices-drop