According to DowJones newswire: "CME Group Inc. said it will raise the collateral requirements for trading in benchmark gold, silver and other precious metals futures contracts, effective at the close of business Tuesday. Margins to trade benchmark Comex 100-troy ounce gold futures will be increased by 19%, CME said in a notice emailed late Monday. The margin to trade silver will increase 18%, palladium will increase 14% and platinum will increase 19%. Natural-gas futures will increase 5.6%s."
As Chris Capre, founder at 2nd Skies, notes: "The bloodbath started on Friday when someone sold 400 tonnes (over 15% of annual production), which comes out to approximately $20B (yes, Billion) in value. This tripped the stops below the critical multi-year support level at $1500, and hasn’t looked back since then."
"Considering how the PM has taken out every major support level without leniency, i’m expecting further losses here, with the $1309 and $1260 (July 2010 highs) up next. This is not the time to be looking for bottoms, and a lot of money can be made here trading this trend. So keep your composure, look for shots, and don’t take profit too early as you can make several months of gains in a single with trend trade here if done correctly. Pullback levels to get short are $1384 and $1424" Chris adds.
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