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Gold price tended to increase in September

Recently World Gold Council (WGC) published the report, Mid-year outlook 2018: Global economic trends and their impact on gold says, the gold price has tended to increase in September! WGC says, “We believe that the confluence of key trends, as highlighted for the second half of 2018, could be supportive of gold demand.” In addition, gold’s recent pullback will likely support consumer demand as lower prices have historically increased jewellery buying.

For investors, gold's current price range may offer an attractive entry level, especially since net longs linked to COMEX gold futures are at their lowest level since mid-2017. And money manager net longs, a subset of the broader metric, are close to zero – a level not seen since 2015 when gold hit a multi-year low.

Historically, such a scenario has coincided with a rebound in the price of gold, as even a small catalyst for investment demand may caught speculative investors with a large exposure to short positions. Finally, while the summer period tends to be a quiet period for gold buying and trading – as seen by softer seasonal demand, lower trading volumes and sideways price movement – the gold price has tended to increase in September as consumers prepare for a traditional buying period and investors rebalance their portfolios before the end of the year. Reader’s Note: Sooner the full report would be uploaded.

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