SMM Daily Review - 2011/10/24 Shanghai Gold Markets

SHANGHAI, Oct. 24 (SMM) – The most active SHFE 1112 gold contract opened RMB 4.25/gr higher on October 24th, and closed at RMB 341.7/gr, up RMB 6.55/gr or 1.95% from previous trading day. Highest and lowest prices during the day were RMB 342.58/gr and RMB 3337.2/gr. Shanghai Gold Exchange (SGE) Au9999 spot gold closed at RMB 341.4/gr, up RMB 5.06/gr or 1.5% from previous trading day.

Shanghai gold prices opened much higher today, and widened gains at the tail of trading supported by positive HSBC PMI data, climbing stock and commodity prices. Traded volumes of gold futures rebounded significantly today in Shanghai. Total positions, however, were continuously decreasing, indicating that investors are still cautious. SMM expects Shanghai gold prices to continue fluctuation in the short term as investors keep their eyes on the EU Summit this Wednesday.