SMM Daily Review - 2011/8/22 Gold Market

SHANGHAI, Aug. 22 (SMM) – Most active SHFE 1112 gold contract prices opened RMB 6.34/gr higher on August 22nd and closed at RMB 392.38/gr, up RMB 11.01/gr or 2.89% from previous trading day. Highest and lowest prices during the day were RMB 392.67/gr and RMB 384.67/gr. Shanghai Gold Exchange (SGE) Au9999 spot gold closed at RMB 389.8/gr, up RMB 10.97/gr or 2.9% from previous trading day.

Following a record high of global gold prices overnight, Shanghai gold prices gapped much higher today and moved at high levels supported by falling stock prices across Asia, and further rises were reported at the tail of trading. SMM expect gold to remain strong in the short term due to market worries towards stagnation of European and US economies.