Gold fall from record as CME raises margins 22%

Gold today fell from a record after CME Group Inc boosted margins on futures contracts, prompting some investors to sell the metal after a three-day rally.

Gold declined USD 7.70, or 0.4%, to USD 1,776.60 an ounce after touching an all-time high of USD 1,817.60 on the Comex. While, silver futures fell 0.8% to USD 39.015 an ounce. Silver fell 0.8% to USD 39.015 an ounce.

The price has gained 8.8% this month, after Standard & Poor's cut the US credit rating one level from the top AAA grade on Aug. 5.

CME, the world's largest futures market, raised margins on gold contracts by 22%. The minimum amount of cash speculators must keep on deposit, will rise to USD 7,425 per contract from USD 6,075.

The margin for hedging will gain 22%, rising to USD 5,500 from USD 4,500, the CME said.