As I am writing this Gold is up $12 on the first day of US trading in September. I have mentioned this a few times – September is usually an exciting month for Gold. This article discusses the fundamental drivers behind Gold’s fall run.
Source: Money Week
Gold rose yesterday, to near $630 an ounce, due to “expectations demand will increase as jewellers stock up ahead of seasonal buying in India and as investors return from summer vacations,” reported Bloomberg.
“Gold has gained every September since 2000 as jewellers buy the metal for the winter holidays, the Indian wedding season and as investors in Europe and the US return to work after the summer,” the newswire continued.
Apparently gold has only fallen nine times during the month of September since it began trading on exchanges in 1975. As Ambrose Evans-Pritchard puts it in The Telegraph: “Even when [gold] churned ever-down from a peak of $850 an ounce in 1980 to $255 in March 2001, it usually managed to eke out a meagre counter-rally each September.”