SHANGHAI, Oct. 10 (SMM) -- COMEX December gold futures prices closed at USD 1,635.8/oz on October 7th, down USD 17.4/oz or 1.05% from previous trading day. The metal gained a total of USD 13.5/oz or 0.83% during the 7-day Chinese National Day holiday, with highest and lowest prices of USD 1,680.5/oz and USD 1,597.6/oz during the period. London gold price closed at USD 1,652/oz on October 7th.
COMEX December silver futures prices closed at USD 30.993/oz on October 7th, down USD 1.012/oz or 3.16% from previous trading day. The metal gained a total of USD 0.91/oz or 3.02% during the 7-day Chinese National Day holiday, with highest and lowest prices of USD 32.5/oz and USD 28.6/oz during the period. London silver price closed at USD 31.98/oz on October 7th.
The limit-breaking deficit in Greece and slow Euro zone actions to stem the region’s debt crisis had pushed investors’ haven demand high during the 7-day Chinese National Day holiday. This demand was further boosted by European Central Bank’s decision to maintain existing interest rates and British central bank’s decision to expand its quantitative easing scale.
On the other side, the US Fed president Bernanke’s remarks to provide measures for helping US economy grow lifted investors risk appetite, thereby eroding demand for gold and silver. Meanwhile, Moody’s downgrades for Italy, Spain and several European financial institutions also dragged down investments in the two metals.
Discussions on progresses made for solving the European debt crisis has recently been the decisive factor for gold and silver prices, which fluctuated in a wide range during the holiday period. SMM expects gold and silver to continue fluctuating in the short term as the European debt crisis develops.