Thursday, May 5, 2011
Silver falls to one-month low after COMEX margin hike
SINGAPORE, May 5 (Reuters) - Silver prices fell 1 percent on Thursday to a one-month low, after the CME Group hiked margin requirement on COMEX silver again, while gold held steady.
* Spot gold was little changed at $1,516.29 an ounce by 0042 GMT, after falling for three sessions straight.
* COMEX gold futures GCcv1 edged up $1.30 to $1,516.60.
* COMEX silver futures SIcv1 fell 1.2 percent to a one-month low of $38.91. Spot silver fell by 1 percent to $38.92.
* The CME Group set successive hikes on COMEX silver futures margin, pushing margin up 84 percent in just eight days.
* As COMEX silver tumbled under the weight of surging margins, the iShares Silver Trust , the world's largest silver-backed exchange-traded fund, experienced a near 5 percent fall in its holdings.
* Mexico massively ramped up its gold reserves in the first quarter of this year, buying over $4 billion of bullion as emerging economies move away from the ailing U.S. dollar, which has dipped to 2-1/2-year lows.......read on