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Gold Retreats from Record on Profit Taking, Margins Rise
Aug 12,2011 10:03CST
industry news
Source:SMM
Gold futures on the COMEX Division of the New York Mercantile Exchange on Thursday retreated from historical record, as some investors opted to book their profits following recent rallies.

CHICAGO, Aug. 12 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange on Thursday retreated from historical record, as some investors opted to book their profits following recent rallies. Besides, the requirement to increase gold margins also added to negative tone.

The most active gold contract for December delivery declined 32. 8 U.S. dollars, or 1.8 percent, to 1,751.5 dollars per ounce, the highest closing in history.

Market analysts said that some investors are reducing their gold positions following a string of records in recent trading sessions.

The New York gold price further hiked two days after breaking the 1,700-dollar mark amid worries over the debt problem in the U. S. and EU. Gold even surpassed the 1,800 dollars during Wednesday' s trading and tried the all-time record of 1,817.6 dollars on Thursday.

A market watcher in Chicago noted that surpassing the 1,800 mark "was a natural place for people to lighten up" on their gold positions.

Meanwhile, CME Group, owner of the world's largest futures market, on Wednesday raised the margin requirements for trading in gold, prompting investors to sell off their gold holdings. The minimum amount of cash that investors must keep on deposit for an initial account was lifted to 7,425 dollars on a 100-ounce contract, up from 6,075 dollars.

However, some traders are still confident in gold market, saying as the economic problems around the world continue to manifest, more and more people are identifying that gold is the ultimate safe-haven asset. A trader noted that gold could easily end the year at around 2,000 dollars per ounce.

Silver for September delivery fell 65.8 cents, or 1.7 percent, to 38.669 dollars per ounce. Platinum for October delivery rose 20. 7 dollars, or 1.2 percent, to 1,792.4 dollars per ounce.

 

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