Gold fell in September amid general weakness in financial assets
Gold fell in September by 4% to around US$1,743/oz.[1] This was the second consecutive month of declines, with gold now over 8% lower y-t-d. Gold wasn’t alone, however. Treasuries, corporates, US- and non-US equities all fell in September, possibly as a result of deleveraging. The Q2 level of margin debt for equities was at a record high. It would be understandable if some leverage has been removed as we head into the historically volatile month of October. And, in our view, it’s quite possible that this deleveraging has affected most assets (energy and industrial metals excepted).
Chart 1: Gold failed to generate momentum in September
Hourly spot gold price*
Sources:
[1] Based on the LBMA Gold Price PM as of 30 September 2021.