Gold Sees Fifth Consecutive Monthly Decline

APMEX

8/31/2018 12:47:52 PM

Daily Gold & Silver Market Report – 08/31/2018

The price of Gold saw its low for the week Thursday, dipping below that $1,200 per ounce mark. While it experienced a slight rebound in early trading Friday, prices are still down more than 1 percent for the month, with August poised to end with a five-month decline in Gold prices. That would be the longest streak of losses since 2013, according to CNBC. While some thought prices had a chance to see gains this month, analysts say the failure to pass a new NAFTA agreement may have kept prices down. Gold futures were up slightly Thursday.

During 2018, Gold prices have gone down approximately 7.7 percent, challenged mostly by the strength of the U.S. dollar. Trade tensions between the United States and China, along with rising American interest rates, have also been factors. Traders in China Friday stated the U.S. dollar’s weakness against the Chinese yuan led to increased cheap bullion purchasers in the country. China is the world’s biggest consumer of metal commodities.

September Gold Prices Forecast

Many Precious Metals investors are hoping for good news for Gold in September, based on a price pattern observed since the early 1970s. Gold bullion has seen an average gain of 2.1 percent in the month of September over the last three decades, according to an article published on MarketWatch. The monthly average for all months other than September, comparatively, is 0.6 percent. Noting that the future can frequently behave like the past, many analysts suggest September will finally give Gold prices a much-needed lift. The report does point out that, overall, the fall months can be highly volatile for Gold. Also, September is not always a positive month, but the average growth does point to a significant reason for optimism.

Mining Declines May Lead to Platinum Price Increase

The price of Platinum experienced many challenges in August. Spot prices fell to a low of $755.70 per ounce, the lowest rate seen in the market since 2003. Investment demand has diminished considerably over the last few years and declines in diesel-powered car manufacturing are weakening industrial demand. Platinum prices should see some growth soon, primarily due to mining declines in South Africa. A piece published by Seeking Alpha compares the situation to recent higher prices from Rhodium. Decreases in production from South Africa, the world’s leading supplier of Platinum Group Metals, will eventually lead to a deficit in demand. As demand increases, of course, prices will move upward. Price corrections due to long-term for Platinum, along with low liquidity in futures markets, should also give the world’s rarest Precious Metal a price boost.

At 1:45 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,203.70  Up $2.30 
• Silver, $14.58 Down $0.02
• Platinum, $792.60 Down $2.20
• Palladium, $987.80 Down $9.10

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