August 2017 Monthly Summary
Gold prices in August rallied $52.50 or 4.14% to close the month at $1,322. The gold price upswing was accompanied by significant rallies in silver, platinum group and base metals prices. Gold’s rally in August followed July’s $27.00 rally (2.17%). For the year, gold prices have rallied $170.00 or 14.76%. August began with prices trading at $1,268.75. The first week of the month saw gold prices make lower lows as the US Dollar rallied. The July non-farm payrolls report was surprisingly strong. Prices bottomed on the 8th against the backdrop of North Korean tensions. By the 11th prices had traded up to $1,292. However, by the 15th prices had fallen as low as $1,268.00 as Washington had talked down the North Korea threat, retail sales were strong and the US Dollar was moving up.
At midmonth equity prices fell as concerns about Washington’s ability to pass tax reform grabbed the headlines. Gold prices broke up through the $1,300.00 level intraday on the 18th, but took until the 28th to close above this key big figure. The 28th featured Fed Chair Janet Yellen’s speech at Jackson Hole, perceived as dovish, while the euro moved higher after ECB head Mario Draghi spoke at the same event.
The month’s gold price peak of $1,325, and the high thus far in 2017, occurred on August 29. Gold prices closed the month trading $1,322.00. GLD holdings rose nearly 790K (3.10%) in August. Between August 1st and the 29th, Managed Money traders increased their net long futures positions on Comex 102K contracts (87%) to 221.1K contracts.
In other metals, silver prices added 4.47%, platinum prices rose 6.22% and palladium prices rallied 5.74%. Copper prices rallied 6.58%.