8/09/2011 06:30:00 PM
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The Shanghai Gold Exchange raised margin requirements for gold futures to 11% from 10% with effect from the end of settlement Thursday. The hike is aimed at maintaining market stability and protecting investors, the exchange said in a notice. Gold is testing new highs everyday and the yellow metal is headed for its 11th consecutive yearly rise. Equities, which are considered as the most preferred asset class, are under sharp selling pressure globally as investors become cautious and risk averse. Among major commodities, base metals and crude oil have slumped sharply as global economic concerns have threatened demand and in turn have led to investors shunning these investment assets too. If the current macroeconomic concerns continue to linger then gold prices could rise further while copper and crude oil will continue to tread lower.
Investment demand took a hit yesterday as redemption of 119.71 tonnes of silver holdings were seen in iShares Silver trust. Gold/Silver ratio surged high to 44.16 yesterday from 43.36 on 6th Aug, 2011 indicating that the safe haven buying demand of Gold is denting the investment demand for the white metal.
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