Lates News

The price of gold fell sharply to near $4680 during the early Asian trading session on Friday. However, as market sentiment stabilized and the US dollar weakened, gold and silver attracted buyers again, with spot gold surpassing $4830. The previous decline was believed to be traders reducing positions to make up for losses in the stock market and adjust their positions. The Chicago Mercantile Exchange also raised the initial margin requirements for gold and silver futures contracts, increasing the amount of collateral traders must deposit to open and maintain positions. The decline in tech stocks forced some traders to sell gold positions to meet margin requirements, putting pressure on gold prices. Looking ahead, the US dollar is expected to remain the core driver of short-term trends, with precious metals typically moving inversely. Analysts at ING Bank in the Netherlands suggest that in the short term, volatility may remain high as the market continues to digest last week's position adjustments. In the absence of a substantial change in macroeconomic fundamentals, recent selling is expected to be corrective rather than structural.