Gold slumped from record highs yesterday, not being able to hold to fresh highs above $1800 following a massive rise in the margin on Gold futures in US. Strong gains in equities also hurt the sentiments for the yellow metal. The metal topped highs of $1815 per ounce in the electronic moves yesterday but trended lower thereafter and slumped sharply in the New York trades. The DOW added 400 points; yet again coming back from the previous day's drubbing when the index had lost 500 odd points. A modest revival in risk appetite and a drop in US jobless claims pushed the index up. However, the real dampener for gold turned out to be the CME Group, owner of the world's largest futures market, which raised margins on gold by 22%. The minimum amount of cash that speculators must keep on deposit for an initial account increased to $7,425 on a 100- ounce contract from $6,075. Gold futures for December delivery slumped $32.80, or 1.8%, to close at $1,751.50 at 1:39 p.m. on the Comex in New York, the biggest decline since June 23. MCX Gold futures for October slumped from highs near Rs. 26400 and pared more than Rs. 700 in intraday moves. The counter looks likely to face selling pressure as long as it stays under Rs. 26000 levels.

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