SMM Morning Review - 2011/9/26 Gold & Silver

SHANGHAI, Sept. 26 (SMM) -- COMEX December gold futures prices opened at USD 1,743.6/oz and closed at USD 1,639.8/oz on September 23rd, down USD 101.9/oz or 5.85% from previous trading day, and USD 49.2/oz lower than London’s USD 1,689/oz during the day. Highest and lowest COMEX prices during the day were USD 1,787.7/oz and USD 1,724.7/oz.

COMEX December silver futures prices opened at USD 36/oz and closed at USD 30.101/oz on September 23rd, down USD 6.499/oz or 17.76% from previous trading day, and USD 2.799/oz lower than London’s USD 32.9/oz during the day. Highest and lowest COMEX prices during the day were USD 36.7/oz and USD 30.101/oz.

Due to stabilizing stock prices in Europe and the US, strengthening US dollar index and long-term over buy for gold, investors successively exited gold and silver markets as they believed the US dollar was safer, with gold and silver prices reporting largest daily losses during recent 5 years. Further more, CME announced last Friday to lift margins for gold and silver futures trading by 21% and 16% respectively starting from this Monday. This move is also expected to keep gold and silver prices on the downward track.