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The September stock dark cloud may be the silver lining of the gold, silver bulls

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(Kitoko News) – CNBC’s “Pro Playbook” email dispatch on Thursday said: September is, on average, the worst month for stocks, according to data compiled by Stock Trader’s Almanac.

Since 1950, the S&P 500 has averaged 0.5% losses in September, including an 11.9% decline in 1974. The benchmark index has also seen him record a September loss over the last two years, dropping 4.8% in 2021 and 3.9% in 2020. This historically weak performance this month, along with the fall in August and hopes of further interest rate hikes from the Federal Reserve and other central banks, could lead stock indices to retest their mid-June lows. raises concerns about

The above scenario could bring price troughs to the gold and silver markets. Gold hit a six-week low on Thursday and silver hit its lowest in more than two years.

The metals market (real assets) and the stock market (paper assets) compete for trader and investor money, and the turbulent months of September and October in the stock and financial markets saw doctors as safe havens. May be as ordered for gold and gold. silver market.

It could also be argued that hawkish central banks and the notion of slowing global economic growth likely to weigh on consumer and commercial demand for the metal are now priced into gold and silver prices. increase.

Regarding the bearish element of central banks on metals, don’t be surprised if a “sell the rumor buy the fact” scenario plays out in the gold and silver markets in the short term.

Also, from a short-term technical perspective, the gold and silver markets are technically oversold and a corrective bounce is due soon.



Disclaimer: The views expressed in this article are those of the author and may not reflect the views of the author Kikko Metals Co., Ltd. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the authors can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation of an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the authors of this article accept no liability for loss and/or damage resulting from the use of this publication.

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