NEW YORK (TheStreet) -- The price of gold has changed direction, and after adding more than $90 to its value since the end of May, gold kicked off the week with more than a $30 fall.
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
One of the reasons for last week's recovery of gold is the recent decision of the CME Group
(CME) to slash the gold margins by 10%.
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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?
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