Gold prices are falling below $4,700 as market players continue to cover losses in the stock market and reposition positions.
At 9.20 am, gold prices were at $4,710, down 1.44% since it opened early Friday in Asian trading.
The Chicago Mercantile Exchange Group (CME), the world's largest derivatives market, raised initial margin requirements for Gold and Silver futures contracts, increasing the amount of collateral traders need to provide to open and maintain positions.
This move, along with a drop in technology stocks, forced some traders to liquidate gold holdings to meet margin requirements, thus creating short-term selling pressure on the yellow metal's price.
At the same time, easing geopolitical tensions are also affecting demand for gold as a safe haven asset.
Iranian and US officials confirmed that the two sides will hold talks in Oman on Friday, with markets remaining cautiously watching for any developments that could affect global risk sentiment.
On the other hand, renewed concerns about the independence of the Federal Reserve (Fed) could weaken the value of the US Dollar (USD), thus supporting the prices of commodities denominated in USD.
The US President said on Thursday that he would reject Kevin Warsh as a candidate for Fed Chairman if Warsh expressed a desire to raise interest rates, a statement that raised concerns about political interference in monetary policy.
