Silver futures declined further, as the increase in the margins required continues to influence investors in selling off the commodity. Silver futures declined by 2.63 percent to close the market at USD $ 35.287 an ounce. On the other hand, gold advanced by 0.69 percent to be at USD $ 1491.60 an ounce.
The CME Group, owners of Comex, has increased the margin payment that is required to be deposited to brokers for speculating on silver futures by 84 percent in two weeks. The margin is set to further increase to USD $ 21600 per contract after the 9th of May. This move was done in order to cool down the hyper-speculation which had been occurring in the market since the past few weeks. With many investors unable to meet the margin and still maintain sufficient profit levels, there has been massive selling off, which has brought the price of silver down to much saner levels.
Gold gained in its value after a US Labour Department report showed that the job market had improved more than expected. The number of new jobs handed out in April was 244, 000, higher than the projected figure of 185,000. This report increased investor’s confidence about the US economy improving and the demand for precious metals rising.
The other factor which bought about an increase in gold was the fact that since gold touched USD $ 1462.50 an ounce yesterday, it induced investors to buy more of it in order to take advantage of when gold would get nearer to the USD $ 1500 mark. An increased level of buying ultimately led to gold making advances.