The gold market typically ends its summer doldrums with a sharp move higher as autumn draws in. Twenty of the last forty summers saw the price dip before rising sharply to end the year higher, above both January 1st and the spring peak.
Will the mode apply again in 2009? This summer sale knocked some 10% off the February and June peaks in Dollars. For Sterling investors, it offered the steepest discount to early-year peaks since 1992, as the Financial Times noted last month, quoting our research here at BullionVault. And now "Gold volatility is set to rise as we head into September," reckons Walter De Wet at Standard Bank, writing a note to clients Friday morning.
"The underlying price should move either up or down. We expect the move to be higher."