The reasons why gold and silver fall sharply

Gold and silver fell on a free-fall ride on a Friday, the day, the bubble burst finally. Gold registered a fall of more than $100 in western markets so followed by Asia on Saturday.

Reasons behind the steepest fall in gold and silverprices:

CME Group raises margins: Chicago’s CME Group raised the margin requirements on gold and silver trading after prices of the metals dropped in last two days.

With this, the minimum cash deposit for trading in gold futures rose 21% to $11,475 per ounce contract and for silver; the minimum cash deposit was raised from $21,600 to $24,975, which made bullion traders to take money off the table from the precious metalsas trading turned expensive.

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Tags: Gold analysis, Gold future prices, Gold futures, Gold investment, Gold news, Gold price, Gold price forecast, gold prices, Silver price, silver prices

Posted by VBN on Sep 25 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry