Gold crashed more than $100 Friday, as a slide turned into a free fall, with weeks of volatility, renewed strength in the dollar and talk of hedge fund liquidation wrecking its safe-haven status. The sell-off came even after relative calm was restored to the stock and oil markets following Thursday's losses. Bonds also dived with gold and silver as investors took profit on a near weeklong rally in US Treasuries. Widespread talk of possible selling by big hedge funds covering losses in other markets set off one of the biggest routs on record in the precious metals group. The CME Group, which oversees trading in US gold and silver futures, responded by raising margins, or deposits, required on trades of the two precious metals as well as copper. The move would further squeeze the most optimistic investors in gold, who are trying to hold onto long positions or bets on higher prices. US gold futures' benchmark December contract on COMEX settled down 6 percent, or more than $101, at under $1,640 an ounce. Spot silver was down 14 percent at a seven-month low below $31 an ounce. Benchmark silver futures closed down nearly $6.50 at around $30.10 an ounce. Despite those steep losses, spot gold remained up 16 percent year-to-date due in part to big gains in August. Silver futures, however, turned negative.
