Gold shines most in September on seasonal buys

  • Today’s AM fix was USD 1,285.00, EUR 974.96 and GBP 775.40 ounce.
  • 
Yesterday’s AM fix was USD 1,286.50, EUR 974.77 and GBP 775.79 per ounce.
     

Gold investors are hurting from prices within 1% of a two-month low can find solace from the historical record and research and showing gold performs best in September.

Our Bloomberg chart of the day shows bullion averaged gains of 3% each September over the past 20 years, beating next best month November, when prices rose an average 1.8% according to Bloomberg based on a market update by GoldCore. We covered gold’s seasonality and gold’s best performing months here.

Buying increases with India’s festival period, which runs from late August to October and is followed by the wedding season. At these times, bullion is bought for part of the bridal trousseau or in jewelry and bar form as gifts from relatives.
 


September Sees 3% Gains Over 20 Years. Source: Bloomberg

 
Chinese purchases may also increase toward year-end, before the country’s Lunar New Year celebration in February. China  replaced India as the largest gold buyer in 2013.

“Indian jewelers and dealers will be stocking up in the coming weeks, so it should affect prices,” said Mark O’Byrne, a director at brokerage GoldCore Ltd. in Dublin.

“A lot of traders are aware of this trend towards seasonal strength, so that may contribute to higher prices. They tend to buy and that creates momentum.”

See Gold Shines Most in September on Seasonal Buys: Bloomberg Chart of Day here
See Gold’s Sweet Spot - Strongest Months Are August, September, November And January here

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