NEW YORK (Commodity Online): Decline in gold prices have attracted a record turnover at the Shanghai Gold Exchange (SGE) as retail interest strongly picked up during China's golden week holiday.
-The annual festivities was expected to be “busy like crazy” as a spokesman for the Chinese gold and silver exchange said. The weekly turnover at the SGE hit a record high as the national holiday and lower gold prices spiked investor interest and volumes.
-Increasing volatility in Platinum futures forced CME to raise margins by almost 29% last week. Though a sharp sell-off akin to gold and silver is unlikely, platinum prices may remain muted for the week.
-Increased volatility in the precious metals segment is unlikely to subside given the uncertain economic outlook. The FOMC meeting will be critical as it has been in the past. Equally important and closely watched will be the actions of Merkel/Sarkozy post the promise to create an effective framework to deal with the European crisis within weeks.
