SMM Daily Review - 2011/9/22 Shanghai Gold Markets

SHANGHAI, Sept. 22 (SMM) -- Most active SHFE 1112 gold contract opened RMB 5.1/gr lower on September 22nd and closed at RMB 367.01/gr, down RMB 6.38/gr or 1.71% from previous trading day. Highest and lowest prices during the day were RMB 369.44/gr and RMB 366.21/gr. Shanghai Gold Exchange (SGE) Au9999 spot gold closed at RMB 368.6/gr, down RMB 4.39/gr or 1.18% from previous trading day.

US Fed’s pessimism towards US economy led to plunges in US and European markets overnight. The climbing US dollar index also dragged gold price into a downward track, with global gold prices closing lower. Shanghai gold prices opened lower today and fluctuated downward during the rest of the trading day. Transactions in Shanghai Gold Exchange decreased significantly today, but no significant drop in position was seen, indicating strong support at lower levels. However, the strong US dollar in recent period will still weigh on gold price, which is expected to stay in a downward track in the short term as fluctuation continues.