This decline also dragged down the leading gold exchange-traded fund -- SPDR Gold Trust (GLD) -- which is trading at $126.10, a 2.1% drop since the beginning of the week. Other gold investments have fallen, too. For instance, shares of Goldcorp (GG - Get Report), a Canadian gold-mining company, have declined by 1.3% to $28.04 Will gold's recent fall continue?
Lower margins at the CME
This reduction benefits gold investors as they require less cash to open a position on gold contract in the CME.
The news had a short-term positive impact on the prices of gold at the end of last week. But since then, the price of gold changed direction and corrected for this one-time occurrence. The main question remains, has the demand for gold picked up?