Gold ends the day higher, but loses for the month

 Gold ends the day higher, but loses for the month

Gold ends the day higher, but loses for the month.

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The end of September was one of the better days for gold. Even so, the gain was too small, too late in the month or quarter to be meaningful.

The December contract, the most active contract on the New York Comex, closed Thursday’s trade at $1,757 per ounce, a gain of $34.10 or 2%. September ended with a loss of 3.4%, while the third quarter ended with a loss of 0.8%.

A rise in Treasury yields did not stop gold from rising.

Gold is perceived as a safe haven among bargain hunters as smart investors worry about a collapse in Chinese real estate prices and the spread of toxic debt.

Traders say the rise could be due to overdue concerns about inflation since oil prices are expected to reach $90 per barrel from current levels of just below $80 per barrel.

Gold’s safe-haven status was also boosted by the Senate debacle, where Democrats and Republicans failed to reach an agreement to raise the US debt ceiling and avoid a government shutdown and a possible US debt default.

There may also be a bit of a gold market short here as well which is causing this to happen

The $1,780 level will likely not be the end of the rebound for gold. Gold might survive further downward pressure if the energy crunch gets worse. A massive reversal of interest rate hike expectations could be triggered by fears of $90 oil and the risks associated with the European and Asian economic recovery.

Olumide Adesina

Olumide Adesina a France-born Nigerian, a Certified Investment Trader, with more than a decade of working expertise in Investment and Trading. He is also a reputable author and writer for CoinDesk and FxEmpire.

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