Gold took quite a beating in September, bucking its seasonal average monthly return of 2.3%. The political battle between President Barack Obama and Congress, China’s Golden Week, and India’s gold import restrictions likely weighed on the metal.
Unlike many commodities, there are many shades to gold, such as the Love Trade’s buying gold for loved ones and the Fear Trade’s purchasing gold as a store of value. An additional “shade” investors need to be aware of is how the Fed interprets the recovery of the U.S. economy.
The U.S. Comex gold futures retreated 0.44% in the past two days and rose 2.78% for the week to finish at $1,328.80 on Thursday. The gold prices have reacted positively to the latest jobless claims data in the U.S. and the CPI data in Japan.