SMM Morning Review - 2011/11/7 Gold & Silver

SHANGHAI, Nov. 7 (SMM) -- COMEX December gold futures prices opened at USD 1,766.4/oz and closed at USD 1,756.1/oz on November 4th, down USD 9/oz or 0.51% from the previous trading day, and USD 7.1/oz higher than London’s USD 1,749/oz during the day. Highest and lowest COMEX prices during the day were USD 1,766.4/oz and USD 1,752.9/oz.

COMEX December silver futures prices opened at USD 34.5/oz and closed at USD 34.084/oz on November 4th, down USD 0.416/oz or 1.21% from the previous trading day, and USD 0.134/oz higher than London’s USD 33.95/oz during the day. Highest and lowest COMEX prices during the day were USD 34.7/oz and USD 34/oz.

Though the Greek government cancelled its referendum plan, the risk aversion sentiment was quite strong during the day as the confidence vote for the Greek government added to uncertainties for solving the European debt crisis. Meanwhile, with the October US unemployment rate narrowing slightly to 9%, the US dollar index strengthened. Further more, profit-taking activities before the weekend added to pressures on gold and silver, leading to slight losses for the two metals. The European debt crisis has yet to find an end, the rate cut by the European Central Bank, however, will provide practical support for gold and silver. SMM expects gold and silver to remain strong in the short term as fluctuation continues.