Gold sheds nearly $100 for the week

Gold prices ended slightly higher on Friday but swung to a weekly loss of nearly $100, fueled by a potential slowing of the Federal Reserve’s bond purchases later this year.

Gold for August delivery gained $5.80, or 0.5%, to $1,292.10 an ounce, but posted a weekly loss of $95.60.

The contract had crashed more than 6% during Thursday’s floor trade on the New York Mercantile Exchange.

After settling Nymex trade at $1,286.20 an ounce — the lowest close since September 2010 — August gold took further damage on news that exchange operator CME Group Inc. was hiking margin requirements.

The CME, which owns the Nymex’s metals-trading Comex division, said following Thursday’s close that it would hike initial and maintenance margins for gold by 25%, according to reports.

The increase means speculative traders must have $8,800 to open a 100-troy-ounce position, up from $7,040, and keep $8,000 to hold the contract overnight, up from $6,400.

The new margins would come into effect after Friday’s close, CME said.

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