Aug. 26 (MF Global) -- This market comment was written at 8:10 a.m. on August 25th, US east coast time...

Metals rose slightly yesterday largely on account of constructive US macro data, but trading conditions were relatively quiet compared to what was going on in other markets. US stocks, for example, staged another strong advance, sending bonds tumbling, with the long bond losing 3 whole points on the session. Gold plunged 4% on the day for one of its sharpest drops since 1980. After the close, the CME announced a 27% margin hike (quite an unusual move in light of falling prices), contributing to another 2% loss this morning. Since Tuesday's peak of roughly $1910, gold prices have retraced some $200/ounce and we suspect that more selling could still come our way given how sharply the metal has advanced. Finally, there were widespread declines in grains and some of the softs yesterday, capping what was a very mixed showing across most markets. Right now, base metals are slightly higher, while energy prices are also showing a modest $.50/brl gain. European stocks are up, leading to a marginally higher opening for US stocks. The dollar is slightly weaker, now trading at $1.4420 against the Euro.