Investors are trying to handicap whether the CME will again boost margin requirements as gold inches back toward $1,800 an ounce.
“Current gold price volatility is approximately half the levels seen in the sharp run up in silver margins prior to May, although historical patterns suggest scope for a possible further 15% rise in margins,” ETF Securities said. “Such a cumulative rise would still be less than half the hike in silver margins seen in May. It also comes against strong fundamental price drivers for gold – e.g. ongoing sovereign debt uncertainty, extraordinary monetary easing and strong central bank and strategic investor demand.”
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) was up 0.5% in early trading Tuesday. The fund is managed by ETF Securities.
ETFS Physical Swiss Gold Shares
