Gold Drops for Third Day After Margin Boost as Equities Advance
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Gold fell for a third day, extending its biggest drop since February 2010, after CME Group Inc. raised futures margins for a second time this month, prompting some investors to sell the metal after a rally to a record high.
Bullion for immediate delivery dropped as much as 1.7 percent to $1,729.45 an ounce and traded at $1,742.38 at 2:43 p.m. in Singapore. The metal slumped 3.8 percent yesterday as better-than-estimated U.S. economic data boosted the dollar and cut demand for safe assets before central bankers from around the world gather on Aug. 26 for an annual meeting.