June is Gold’s Second Worst Performing Month By Almanac Trader | June 14, 2017
Just as widely anticipated, the Fed did raise rates today by 0.25% to a new range of 1-1.25%. The market’s response was mixed with DJIA finishing the day modestly higher while S&P 500 and NASDAQ finished modestly lower. Gold’s reaction was less favorable, finishing down nearly 0.5% after starting the day well into positive territory. Generally, the higher interest rates go, the less desirable gold can become. Gold does not have a yield and typically storage of physical gold has a cost. However, today’s weakness (or anytime throughout the remainder of the month) might just turn out to be a good buying opportunity for gold.
In the above chart, gold’s monthly performance from 1975 to 2016 is displayed. Historically, October has been gold’s worst month and June is a close second. However, after weakness in June, gold has, on average, enjoyed solid gains in July, August and September. Some of this strength in gold is likely due to safe haven demand during the stock markets worst two months, August and September.
News 
Market Data 
Discover 
