The September Global Precious Metals MMI (Monthly Metals Index) moved sideways, dropping by just 1.8%. Despite the slight loss, month-over-month, gold prices hit lows not seen in around two years.
Around May, gold began a long-term, downward trend. In June, gold enjoyed a small rebound, but it transitioned into a steep decline come July. Furthermore, between July and September, prices began to rise significantly, instilling fresh hope in many investors. However, the rise was evidentially a dead cat bounce. As September approached, prices continued their long-term downward yet trend again.
As of mid-September, gold officially hit its yearly low, confirming the dead cat bounce theory. Whether or not this will prove true for other precious metals remains unseen. While gold prices were in decline before mid-September, recent reports regarding the US economy and inflation severely impacted the gold market.
Furthermore, it's worth noting that Gold prices had been trading in historically high price ranges. Bullish strengths began to die off after a rally, leading to exhaustion. Historically, this leads to a downside reversal, which the gold market saw this past week.
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