Silver Plunges on Tighter Margin Requirements; Gold Ends Higher as Crude Futures Approach $88 a Barrel

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Silver future plunged by the close of trading following the reported imposition of tighter margin requirements. Gold ended lower while crude futures surged to near $88 a barrel.

Crude oil for December delivery closed up 1.3%, or $1.09, to settle at $87.81 a barrel. In other energy futures, heating oil was up 1.39% to $2.44 a gallon while natural gas fell 4.28%, to $4.03 per million British thermal units.

In energy ETFs, the United States Oil Fund ( USO ) is up 2.13% to $37.84. The United States Natural Gas ETF ( UNG ) is down 3.48% to $5.83.

Meanwhile, silver futures were the story today after the metal plunged following the imposition of tighter margin requirements, MarketWatch reported. Late yesterday, the CME Group boosted margin requirements for silver, the report said. The move was apparently made to curb the volatility in the metal.

Gold finished lower as well.

Gold for December delivery finished down 0.8% to $1,399.30 an ounce. In other metal futures, silver fell 7.1% to $26.87 a troy ounce while copper fell 1.42% to $3.98 a pound.

In metal ETFs, SPDR Gold Trust ( GLD ) is up 0.94% to $136.87. Market Vectors Gold Miners ( GDX ) is up 2.41% to $61.13. iShares Silver Trust ( SLV ) is up 1.15% to $26.48.

Commodities to watch:

--Cotton futures pared earlier-session gains following signs that demand in China could slow, according to a Bloomberg report. The move in cotton futures came after China's central bank raised lenders' reserve requirements to cool the economy, the report said.

Commodity stocks to watch:

--Chemical fertilizer company Hanfeng Evergreen ( HFGVF ) said that first-quarter results missed estimates and were hurt by lower production. Reuters reported. Hanfeng Evergreen shares traded in the U.S. were down 11.22%, or $0.73, to $5.81.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: GDX , GLD , HFGVF , SLV , UNG , USO

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