Gold prices witnessed a sharp correction on Friday, sliding more than 11% to settle near $4,907 per ounce, as aggressive profit-taking followed higher margin requirements announced by the CME Group. The sell-off spread across global markets, including COMEX and MCX, as leveraged traders rushed to reduce exposure.

The CME Group raised margin requirements on gold contracts from 6% to 8% and on silver from 11% to 15%, effective February 2, prompting a swift unwinding of speculative positions. The decline came after bullion had surged to record highs near $4,700 earlier in the week. Despite the pullback, gold remains on track for a sixth straight monthly gain and its strongest performance since the 1980s, supported by economic uncertainty, geopolitical risks, and persistent U.S. dollar weakness.

Geopolitical tensions stayed elevated after U.S. President Donald Trump signed an executive order imposing tariffs on goods from countries supplying oil to Cuba. In India, domestic markets were open on Union Budget day, with MCX April gold futures trading about 2% lower at ₹1,49,350 per 10 grams, tracking weak global cues.

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