The Summer of Low Gold Prices

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.
red-graph-shows-profit-crisis
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:

  1. The likelihood of an increased federal funds rate
  2. Seemingly low geopolitical risks
  3. The strengthening of the U.S. dollar
  4. Gold trend followers

These factors helped attribute to the low gold prices of the summer season.

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