Gold staged an abrupt move down early this morning
After tracking sideways for the greater part of Asian trading hours, gold staged an abrupt move down early this morning. Dollar strength was the primary catalyst as sentiment turned against the Eurozone in the wake of election uncertainty in France and ECB President Draghi at the weekend’s G20 finance ministers summit resisted pressure from the IMF to do more to stem the debt crisis in the region.
However, stops were triggered around the $1,638 mark, sending the price even lower. It appears as if
the market has now stabilised around the $1,632, level with good support coming from Asian buyers.
The Shanghai Gold Exchange announced an increase in margin requirements and trading bands for its gold and silver contracts.
The margin for gold contracts will be raised to 13% from 12%, while the trading band is increased to 10% from 9% as of 26 April settlement. For silver, the margin becomes 16% (from 15%), and trading limits are 13% (from 12%). This has not had much effect on markets because the move was largely anticipated in advance as of the end of April/early May holidays in China.
the market has now stabilised around the $1,632, level with good support coming from Asian buyers.
The Shanghai Gold Exchange announced an increase in margin requirements and trading bands for its gold and silver contracts.
The margin for gold contracts will be raised to 13% from 12%, while the trading band is increased to 10% from 9% as of 26 April settlement. For silver, the margin becomes 16% (from 15%), and trading limits are 13% (from 12%). This has not had much effect on markets because the move was largely anticipated in advance as of the end of April/early May holidays in China.
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