SHANGHAI, Sept. 16 (SMM) -- Most active SHFE 1112 gold contract opened RMB 6.47/gr lower on September 16th, and closed at RMB 365.91/gr, down RMB 9.56/gr or 2.55% from previous trading day. Highest and lowest prices during the day were RMB 369.5/gr and RMB 364.82/gr. Shanghai Gold Exchange (SGE) Au9999 spot gold closed at RMB 366.85/gr, down RMB 8.13/gr or 1.07% from previous trading day.
Global gold prices plunged overnight with eroded haven demand due to injection of US dollar liquidity to European banks by major central banks. As a result, Shanghai gold prices opened much lower and fluctuated downward with losses widening at the tail of trading. SMM expects gold to remain weak in the short term.