CME Group considers daily fluctuation limits for gold and silver future contracts
Duncan Richardson, News Editor
30 Apr 2014, 10:32 a.m.
Owners of the U.S. futures exchange, the CME Group Inc., are considering introducing price fluctuation limits for both gold and silver contracts in an attempt to end extreme price volatility.
The introduction of possible limits may address concerns that excessive buying and selling can result in extreme volatility without any fundamental reason behind the trade.
Last October, investors and analysts became concerned over a series of large unexplained trades which caused extreme volatility and disrupted trade in the COMEX gold futures exchange.
Price fluctuation limits are already in place for some base metal, agriculture and financial futures contracts.