Daily Gold Update

Source: Marketwatch

San Francisco— Gold and silver futures notched steep losses Thursday as the main U.S. metals exchange announced two additional increases in trading requirements for silver. Silver for July delivery declined $3.15, or 8%, to $36.24 an ounce on the Comex division of the New York Mercantile Exchange. That was the lowest settlement for a most-active silver contract since March 21, and the largest one-day percentage drop since Dec. 1, 2008. Gold settled under $1,500 an ounce.

CME Group Inc., which owns Comex and Nymex, late Wednesday announced two additional margin-requirement increases, effective at the end of close Thursday and Monday. Higher margin requirements, or the money needed to put up to trade silver, have ignited wholesale selling of the metal that started on Monday and has pulled down other commodities with it. The exchange has announced margin increases four times since April 26. Up until Friday, silver had gained nearly 60% for the year. It had attracted scores of new buyers, many of them retail investors priced out of gold, which had soared past $1,500 an ounce and broken a record high just last Friday. See full story.