Why is CME reducing margins into a rising gold price?

Let’s break down the seemingly counterintuitive decision to reduce margins…

by Samuel Briggs via Kinesis Money

In this week’s Live from the Vault, Andrew Maguire breaks down the CME’s seemingly counterintuitive decision to reduce margins into a rising gold price, and shares price expectations for gold and silver ahead of next week’s BIS options expiry:

The precious metals expert targets the crucial stairsteps for gold and silver amidst the current volatile mix of a strong dollar and rising bond yields, and offers a marketwide update with Basel III fast approaching. 

Turning to the silver squeeze, the long-time wholesaler runs through the knock-on effect of Reddit-driven physical silver demand forcing discipline on the 500:1 leveraged paper markets.