SINGAPORE: Gold fell more than 1 percent on Thursday, extending the previous session's losses, after the CME Group raised trading margins by the most in over two and a half years to curb volatility in the bullion that had surged to dizzying heights.
Spot gold dropped by more than 4 percent on Wednesday, its biggest drop since December 2008, as investors liquidated positions after the precious metal surged nearly 35 percent this year to a record high above $1,911 on Tuesday.
CME increased margin requirements on its gold futures contract by 27 percent, the second hike in a month, following similar moves by the Shanghai Gold Exchange and Hong Kong Mercantile Exchange earlier this month.
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