Mumbai, Feb. 1 -- Gold prices witnessed a sharp correction on Friday, sliding more than 11% to settle near $4,907 per ounce, as aggressive profit-taking followed higher margin requirements announced by the CME Group. The sell-off spread across global markets, including COMEX and MCX, as leveraged traders rushed to reduce exposure.
The CME Group raised margin requirements on gold contracts from 6% to 8% and on silver from 11% to 15%, effective February 2, prompting a swift unwinding of speculative positions. The decline came after bullion had surged to record highs near $4,700 earlier in the week. Despite the pullback, gold remains on track for a sixth straight monthly gain and its strongest performance since the 1980s, supported by economi...