Last week the CME sent out an advisory notice letting everyone know that margin requirements for gold and silver were being lowered. The changes announced would be going in to effect at the close of business day on Tuesday, February 12th 2013.
The benchmark COMEX 100-ounce gold futures contract will be cut by 10 percent to $5,940 per contract from $6,600. Silver and platinum will also be getting a break with a reduction of over 10% for both as well.
Metals took a nice blow to start this week, some say it was due to the Chinese new year, others blaming the popes decision to quit his job. We have been looking to the fact that everyone knew contract requirements and maintenance fees were going to be lowered and more attractive by Wednesday.
As the day opened negative again, metals have turned positive intraday, and we could quite possibly be setting up for a spike and small run for the rest of the week.
You can read the official advisory notice issued by the CMEGroup here;
Changes for precious metals begin on page 6.