Gold Falls Most in 7 Weeks on Stocks, Margins - Bloomberg

Gold futures fell the most in seven weeks in New York as equities rebounded and CME Group Inc. (CME) boosted margins to trade Comex contracts, prompting investor sales after a rally to a record topping $1,800 an ounce.

The Standard & Poor’s 500 Index rose as much as 4.5 percent after a drop in U.S. jobless claims. CME Group, owner of the world’s largest futures market, raised margins on gold by 22 percent. The minimum amount of cash that speculators must keep on deposit for an initial account increased to $7,425 on a 100- ounce contract from $6,075.

“The strength in equities, coupled with the increase in margins, is pushing gold down,” Matthew Zeman, a strategist at Kingsview Financial in Chicago, said in a telephone interview. “Investors are waiting for a deeper correction before they start buying again.”

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