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NEW YORK (

TheStreet

) -- The

CME Group

, operator of the Chicago Mercantile Exchange, announced late Wednesday it's

increasing the margin requirements to trade gold

.

CME said the initial requirement to trade 100-ounce gold futures is rising 27% to $9,450 from $7,425 previously, while the maintenance margin would be boosted to $7,000 from $5,500. The changes are effective on Thursday.

The move follows a lift of margin requirements by the CME earlier this month, and a similar boost by the Shanghai Exchange earlier this week.

Gold for December delivery

plummeted $104 to close at $1,757.30 an ounce

at the Comex division of the New York Mercantile Exchange, putting the yellow metal down more than $150 in the past two days after it climbed above $1,900 an ounce.

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The

SPDR Gold Trust

(GLD) - Get SPDR Gold Trust Report

ETF lost 3.4% to $171.65 on Wednesday, putting it down 7% since its close at $184.59 on Monday.

--

Written by Michael Baron in New York.

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Michael Baron

.

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