SHANGHAI, Aug. 25 (SMM) -- Most active SHFE 1112 gold contract prices opened RMB 19.14/gr lower on August 25th and closed at RMB 363.51/gr, down RMB 19.14/gr or 5% from previous trading day. Highest and lowest prices during the day were RMB 366.62/gr and RMB 363.51/gr. Shanghai Gold Exchange (SGE) Au9999 spot gold closed at RMB 361.1/gr, down RMB 21.18/gr from previous trading day.
Due to several negative factors including reduced safe haven demand with improving market sentiment, margin hike by CME, excessive growth during previous period and profit-taking pressure, SHFE gold futures opened with a stop price in the morning and maintained the price in the afternoon following a slight rebound in the morning session. Spot gold also plunged by over 5%. Positions of most active SHFE gold contract fell sharply by 1,700 lots. SMM expects gold prices may drop further in the short term.