CME raised its margin on Gold again

CME, GLD, IAU, GDX, GDXJ

2 wks after raising margin requirements on its 100 oz Gold contract, the CME Group Inc. (NYSE:CME) has raised the requirement again by 27%.

It now costs a non-commercial or speculative buyer US$9,450 to open a position and US$7,000 to maintain the position overnight.

Overnight Gold prices fell to near 1,700 oz from a high just a couple of days ago of over 1,900 oz. on the fall.

Aside from the apparent victory of anti-government forces in Libya, nothing has changed much on the Global economic front since the last margin was raised on August 11th.

Demand for equities is about where it was then, and equity prices have risen in the past week.

Most important, there has been no overt indication that either the US Federal Reserve or the European Central Bank will do anything but maintain their present courses.

The US Fed will keep interest rates at near Zero and the ECB will not raise rates again, and I believe that these impacts are already priced into Gold. Stay tuned...

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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