This time the interventionist war is being directed on the gold futures markets
From Bloomberg,
Gold declined from its record above $1,800 an ounce after CME Group Inc. (CME) boosted margins on futures contracts, prompting some investors to sell the metal after a four-day rally.
Bullion for immediate delivery dropped as much as 0.8 percent to $1,779.20 and traded at $1,788.25 at 12:58 p.m. in Singapore. Earlier, the metal rallied as much as 1.2 percent to $1,814.95 on concern that global economic growth is stalling as governments in the U.S. and Europe remain constrained by debt.
CME, the world’s largest futures market, raised margins on gold contracts by 22 percent with effect from the close of business today, according to a statement on its website. The initial-margin requirement, or the minimum amount of cash that speculators must keep on deposit, will rise to $7,425 per contract from $6,075, CME said. The margin for hedging will also increase 22 percent, rising to $5,500 from $4,500, it said.
For governments and their allies, desperate times calls for desperate measures.
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