Gold and silver both retreated during September in what can be described as the most volatile month for precious metals in 2019. Gold dropped 3.8% to finish at $1,466.00 and silver fell 7.7% to end September below $17.00, its lowest price in seven weeks. PGMs were mixed for the month, with platinum falling 4.8% and palladium rising 8.9% to a new record high.
On September 4, gold and silver reached $1,556.00 and $19.57, their highest levels in six and three years respectively. After rising so sharply over the past few months, it seemed that September was shaping up to be another huge month for precious metals—especially silver. Silver outperformed gold, rising as much as 5.5% in a single trading session to drop the gold to silver ration below 80 for the first time since February. Despite precious metals’ notable performance to begin the month, ongoing global growth concerns and unstable trade relations between the world’s two largest economies continued to drive investors’ decisions. Volatility hit new highs as investors dissected and reacted to every market development; a tweet suggesting the US would delay tariffs against China could lead to $40.00 swing in gold or a 150-point boost for the Dow Jones. As a result, gold spent most of the month seesawing up and down as markets reacted to ongoing developments.
Equities, which had been moving in unison with gold prices over that past few months on rate cut hopes, returned to their more traditional relationship, moving against precious metals as interest rates took a backseat to a soaring US dollar and improving trade relations. September ended with gold and silver suffering their greatest single day losses of the month, falling 2.2% and 3.7% respectively on the 30th. Stocks soared the same day and ended the month up with the Dow and S&P 500 each gaining around 2% and the Nasdaq rising 0.5%.