(Kitco News) Gold could be looking at the biggest monthly loss in nearly four years in September with even more volatility expected in October as the U.S. election season keeps investors interested in cash, according to analysts.
As September wraps up, gold is down more than 5% since the beginning of the month. December Comex gold futures began the month just below $2,000 an ounce and are now trading at $1,897.30.
And if the $1,900 does not hold by Wednesday’s close, the yellow metal could be in for the biggest monthly drop in almost four years.
“The month that is coming to an end today has not really been a good one for gold. It is facing its biggest loss in almost four years unless it manages to close trading today at a price of at least $1,900 per troy ounce,” said Commerzbank commodity analyst Carsten Fritsch.
One of the main short-term drivers for gold continues to be the U.S. dollar, particularly the EUR-USD exchange rate.
“The marked depreciation of the USD caused gold to rise up until last night, though gold fell again when the dollar subsequently began to appreciate. The USD is strengthening even though the extremely heated first TV debate between U.S. President Trump and his challenger Biden will hardly have allayed concerns about an unclear