My understanding is that the C.M.E have increased the margin on gold to 22%.
This could back fire....if those that hold gold want to keep it. So to come up with the extra margin they may sell stocks? imo
Also this huge volatility over the last week must be hell for leverage players and the derivative market (IRS CDS etc) as there is no focus point to work off.
Because say eg with IRS your exchanging fixed for floating or long term interest swaps for 3 month LIBOR plus interest.
Very destabilising and could cause a flash crash!
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