Gold Drops 2% on Margin Raise

CME Group Offices in Chicago

As predicted earlier this week (see Aug 9), CME Group raised the margins on Gold just as they did in May on Silver. CME Group, the world’s largest commodities exchange, raised margins 22.2% from $4,500 to $5,500 per new contract.   While the retraction doesn’t seem to be as deep as the one with silver, it is still early in the process.

This retraction by all account should be short lived as the global debt crisis  over-powers any margin raises for the near term.  The most recent concern is from the Euro-zone where questions of the French AAA credit rating powered gold  over $1,815 in after-market trading. It seems that France may be next in line for a credit down-grade.

In spite of this current retraction gold is still on track to have one of the largest gains since Aug 2008.  There is enough uncertainty in the global markets that gold should pick up back into the $1,800’s by the end of the month.  This is just the beginning of Golds chase of $2,000 by the end of the year, making for a potential of 13% gain should gold hit the mark. There is still plenty of opportunity to see gains on current acquisitions of Gold & Silver acquire now and watch your investment grow.

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