By: Sara Patterson

The price of gold fell for the third straight day today in Asian trading, as the CME Group raised futures margins for the second time this month. COMEX futures fell over $100 on Wednesday, August 24th, signaling the biggest one-day drop since 1980. Spot gold slipped to $1,732 an ounce, losing nearly $180 since it hit a record high of $1,911.46 earlier this week. Though futures reached an all-time high only two days ago, they tumbled a sharp 5.6% yesterday, confirming the prediction of many analysts that the gold market would no longer be able to support these unprecedented prices.

In response to unpredictable stock markets and the fear of spreading debt crises, investors had been flocking to gold as a safer option, causing the price to rise constantly in recent weeks. The end of this golden era, however, may be over. According to CME, the minimum cash deposit for borrowing from brokers to trade gold futures will rise to $9,450 per 100 ounce contract in the Tier 1 category by the end of today’s trading day. This is a 27% increase, and one investors should be fully aware of as they consider their moves in the coming days. The maintenance margin will rise from $5,500 to $7,000.

To counter the falling gold prices, stock markets are generally up, though analysts are waiting for the statements of Fed Reserve Chairman Ben Bernanke in Jackson Hole, Wyoming tomorrow for a confirmation of how both the US and European debt crises are faring.