By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) — Gold futures edged higher in early East Asian afternoon trade Friday, paring some losses in the U.S. session after the main U.S. metals-exchange operator increased initial margin requirements to trade Comex bullion contracts.
Gold for December delivery GC1Z +0.71% rose 0.6%, or $10.50, to $1,762.00 per troy ounce an ounce on the Comex division of the New York Mercantile Exchange.
During the regular U.S. session, the contract settled down $32.80, or 1.8%, at $1,751.50 per ounce, snapping a three-day winning streak and following its surge to a fresh record above $1,800 an ounce.
Silver futures were also higher, undoing some of their overnight drop, with the September contract SI1U +0.31% rising 19 cents or 0.6% to $38.88 an ounce. The contract retreated 1.7% during the regular U.S. session
Effective Thursday, initial margin requirements to trade gold rose 22% to $7,425 per 100-ounce contract, from $6,075. Maintenance margins increased 18% to $5,500 from $4,500, CME Group Inc. CME +7.40% said. See report on CME margin hike.
The CME has increased gold margins twice in 2011, and has decreased them once earlier this year.
Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.
