September Curse for Gold Investors
Gold investors returning from their summer holidays will be eager to see whether the precious metal can sustain its record-breaking rally, or if it will succumb to the curse of September.
Bullion has dropped every September since 2017. Over that period, the average decline has been 3.2% in September – easily the worst month of the year, and far below the monthly average gain of 1%.
Factors at Play
There are several factors that could contribute to the September curse for gold. One of the possible reasons could be profit-taking by investors who have seen significant gains in the months leading up to September. Additionally, the strengthening US dollar and rising bond yields could also pressure gold prices lower.
Global Uncertainties
Geopolitical tensions, economic uncertainties, and the ongoing pandemic could also play a role in determining the direction of gold prices in September. Any new developments in these areas could either support or weigh down on gold as a safe-haven asset.
Technical Analysis
Technical analysis of gold price movements may provide further insight into whether the September curse will continue this year. Traders will be closely watching critical support and resistance levels to determine potential trend reversals or continuations.
