Falling gold prices this summer meant precious metal buyers were eager to invest in the yellow metal. However, for every buyer there is a seller—and sellers have reasons for cutting their assets.
August saw a number of articles written describing the various reasons for gold’s fall. In summary though, four reasons stand out for this summer’s gold slump:
- The likelihood of an increased federal funds rate
- Seemingly low geopolitical risks
- The strengthening of the U.S. dollar
- Gold trend followers
These factors helped attribute to the low gold prices of the summer season.