SHANGHAI, Oct. 18 (SMM) – The most active SHFE 1112 gold contract opened RMB 0.55/gr lower on October 18th, and closed at RMB 343.01/gr, down RMB 4.29/gr or 1.24% from previous trading day. Highest and lowest prices during the day were RMB 346.9/gr and RMB 343/gr. Shanghai Gold Exchange (SGE) Au9999 spot gold closed at RMB 343.62/gr, down RMB 3.63/gr or 1.05% from previous trading day.
The possibility for China to loosen its monetary policies diminished after the GDP data for the third quarter came out strong. Meanwhile, Germany’s denial of a final solution deadline to the euro zone debt crisis again ignited investors’ worries towards the region. As a result, Shanghai gold prices opened slightly lower today, with losses widening at the tail of trading with the strengthening US dollar. The metal finally closed near the intraday low. Today’s traded volumes remained low, indicating that investors were still cautious towards future market movements. SMM expects the fluctuation in gold prices to continue in the short term due to the bearish economic outlook.