September Pullback in Gold as Markets and Dollar Rally

Precious metal prices eased in September, with the price of gold declining by nearly 2%, and silver easing by almost 4% - ABC Bullion

The month had started off strongly, with gold pushing up toward the USD $1,350oz level, but was unable to hold the gains, with continued strength in equity markets (which hit new all time highs), and a rally in USD contributing to the pullback we’ve seen over the last three weeks.

Markets have also largely faded the potential threat from tensions on the Korean peninsula over the last few weeks, as well as more or less ignoring (for now) the extraordinary developments in Catalonia, which looks set to push forward with a declaration of independence from Spain, irrespective of the Spanish governments determination to pretend the referendum never took place and/or can be ignored.

In Australian dollar terms, precious metal investors were slightly cushioned from the correction, with the AUD easing slightly to USD $0.7825 by end September, leading to a -0.80% decline for AUD gold, and a -2.85% decline for AUD silver.

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