Records show that September has historically always seen a rise in the demand for gold. This is explained by the fact that it is the start of the holiday season in many of the countries which have the greatest demand for gold like India and the United Arab Emirates.
It is the time of year when preparations are made for many religious festivals like Ramadan. The end of Ramadan is celebrated with the giving of gifts like gold.
Likewise, jewellery manufacturers will
buy gold in preparation for the start of Diwili and September also heralds the beginning of the wedding season in India.
In fact, the figures show that gold made gains in 16 out of the past 20 Septembers. Additonally, figures show that since 1988 the
price of gold has gained an average of 3.4% during September and as much as 5% in at least 7 of the last 20 years.
However conversely, this trend is not reflected in other markets and September has historically always been a bad month for stocks and share.