SMM Daily Review - 2011/9/26 Shanghai Gold Markets

SHANGHAI, Sept. 26 (SMM) -- Most active SHFE 1112 gold contract opened RMB 18/gr lower on September 26th, and closed at RMB 341.94/gr, down RMB 18/gr or 5% from previous trading day. Highest and lowest prices during the day were RMB 344.29/gr and RMB 341.94/gr. Shanghai Gold Exchange (SGE) Au9999 spot gold closed at RMB 328/gr, down RMB 32.78/gr or 9.09% from previous trading day.

Due to a more than 5% plunge in global gold prices overnight, SHFE gold contracts opened at stop prices today, with the 5% limit loss maintained following fluctuation within a narrow range during the day. SGE spot gold saw small volumes of buying at the tail of trading. Global gold prices reported more than 6% losses at the closing time of Shanghai trading hours. At present domestic gold price loss is limited to 5%, but will be lifted to 8% from the following trading day. SMM expects SHFE gold price to maintain another 8% loss during the following day given strong bearish sentiment.