SUMMARY
- Gold prices historically experience a phenomenon known as the “September curse,” which refers to a consistent decline in gold prices during this month. This trend has been observed since 2017, with gold prices dropping every September during this period, averaging a decline of 3.2%.
- There are several factors that contribute to this trend. Notably, many investors tend to buy gold as a defensive strategy during the volatile summer months, hedging against risks while trading volumes are lower. However, as September arrives, these investors often sell their holdings upon returning to work, leading to downward pressure on prices.
- Despite these historical trends, it’s important to note that the “September curse” is not an absolute rule. Over a longer time horizon, gold has shown resilience and even price increases in September during certain years. Nonetheless, the recent pattern suggests that investors should be cautious as they navigate this month. However, with gold prices up over 20% year-to-date, will this strength be enough to break the September curse?
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