Flying high in August to finish 3.6% higher
Strong buying interest from jewellery retailer & consumers Recently, the World Gold Council (WGC) published the Gold Market Commentary, It's always the quiet ones! WGC said, flying high in August! Following a strong monthly increase in July, gold posted another healthy gain in August to finish 3.6% higher at US$2,513/oz. It also reached a new all-time on 20 August before a very marginal decline into month end. According to our Gold Return Attribution Model (GRAM), gold was pulled higher by a material drop in the US dollar and, to a lesser extent, lower 10-year Treasury yields as the Fed signalled the time had come for rate cuts. The main identifiable negative contribution came from a momentum factor, the gold return in the previous month, i.e. when high, the following month typically sees a lower return and vice versa. Also of note in August, the significant cut in import duty on gold in India, which took place in late July, has been a shot in the a...