Gold fell more than 1 percent on Thursday, extending the previous session's losses, after the CME Group raised trading margins by the most in over two and a half years to curb volatility in bullion that had surged to dizzying heights. Spot gold dropped by more than 4 percent on Wednesday, its biggest drop since December 2008, as investors liquidated positions after the precious metal surged nearly 35 percent this year to a record high above $1,911 on Tuesday.
Spot gold slipped as much as 1.3 percent to $1,728.59 an ounce, before recovering some ground to trade at $1,739.80 by 0617 GMT. On Wednesday, bullion dropped 4.3 percent, its biggest daily drop since December 1, 2008.