Arab Today, arab today gold extends biggest slump in 18 months
Last Updated : GMT 16:24:40
Arab Today, arab today
Arab Today, arab today

Gold extends biggest slump in 18 months

Arab Today, arab today

Arab Today, arab today Gold extends biggest slump in 18 months

London - Arabstoday

Gold extended its biggest slump in 18 months on speculation financial markets are stabilising, eroding demand from investors seeking to protect their assets, and after CME Group raised margins on futures contracts. Gold fell as much as 3.1 per cent to $1,704.25 (Dh6,259.97) an ounce by 1.16pm in London, taking its three-day decline to ten per cent, the most since 2008. Compared with closing prices, the rout is also the biggest since then. The value of a 100-ounce futures contract traded in New York slumped $10,400 on Wednesday, more than the $7,425 margin requirement that day, prompting CME to increase the minimum cash deposit. \"Gold is a trade, gold is a position, gold is volatile, but gold is not safe,\" economist Dennis Gartman wrote yesterday in his Suffolk, Virginia-based Gartman Letter. \"The public is involved in gold, and the cab drivers of the world have bought into it. Now they are being taken out, at high cost.\" The metal is in the 11th year of a bull market, the longest winning streak since at least 1920 in London, as investors seek to diversify away from equities and some currencies. Central banks are adding to reserves for the first time in a generation, joining billionaire investors including John Paulson in hoarding bullion. The Federal Reserve has taken the unprecedented step of saying it will keep borrowing costs at almost zero at least through mid-2013 to support the economy. CME raised margin requirements after gold futures surged to a record above $1,910 an ounce this week and then plunged the most since March 2008. The minimum cash deposit to borrow from brokers to trade gold futures will rise 27 per cent to $9,450 per 100-ounce contract in the speculative Tier 1 category at the close of trading Thursday, CME said. The maintenance margin will rise to $7,000 from $5,500. The Shanghai Gold Exchange said on Tuesday it would hike margins from settlement yesterday. \"In our opinion the margin is not nearly high enough yet,\" Gartman said. \"Proper margining would seem to be closer to $15,000 per contract, for given the volatility that exists presently the exchange needs to protect itself and its clients from the possibility that a large speculator or two or three cannot put the exchange into jeopardy.\" Speculators held a net 218,403 futures and options contracts by August 16, US Commodity Futures Trading Commission data show. Positions reached 253,653 contracts by August 2, the most since at least 2006, the data show. Immediate-delivery gold fell 3.8 per cent Wednesday after touching a record $1,913.50 on Tuesday and was last down two per cent at $1,724.07, the lowest price since August 12. The metal for December delivery was down 1.8 per cent at $1,726.30 on the Comex in New York. Futures, which reached an all-time high of $1,917.90 on August 23, tumbled 5.6 per cent on Wednesday. Speculation Gold fell on Wednesday on speculation financial markets may be stabilising after reports on durable-goods orders and home prices beat analyst estimates. Global equities touched a one-week high Wednesday. The ten-day historical volatility for gold futures jumped to 41 per cent, the highest level since March 2009, data compiled by Bloomberg show. Silver slumped as much as 35 per cent in London in about three weeks from its April 25 record of $49.79 an ounce after CME announced margin increases. Exchange-traded-product holdings of gold fell for a fourth day yesterday and the most since January, sliding 26.9 metric tonnes to 2,154.7 tonnes, data compiled by Bloomberg show.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gold extends biggest slump in 18 months Arab Today, arab today gold extends biggest slump in 18 months

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gold extends biggest slump in 18 months Arab Today, arab today gold extends biggest slump in 18 months

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Taxi! Transport gets an overhaul

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Turkey warns of 'security' steps

GMT 12:17 2017 Sunday ,24 September

Turkey warns of 'security' steps
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday