Gold took a roller-coaster ride this week, climbing to record highs before falling back more than $200 an ounce before soaring to records once more.
The wild ride started on Tuesday with gold falling and then taking a nosedive from Tuesday’s record high of $1,911.46 per ounce after the CME Group hiked the margins required for trading in the precious metal
Trading on Thursday morning in Asia and Europe saw gold give back 10% of its heady gains from earlier in the week, with spot gold dropping over $200 at one point from its Tuesday high to reach a low of $1,702.44. But after having lost the most since March of 2008 in morning trading, it reversed course to gain everything it had lost and then some.
Bloomberg had reported that a 100-ounce futures contract traded in New York fell by $10,400 on Wednesday, more than the existing margin requirement of $7,425. That led CME to raise margins. The new margin requirements are to take effect Thursday afternoon after close of trading.