Gold had a tumultuous month that saw its price fluctuate $100 dollars only to close nearly right where it began, gaining 0.2% in August. Silver, which plunged in tandem with gold in early-August, never recovered and finished the month down over 6%. Platinum fell 3% in August and palladium dropped nearly 7%.
Gold began the month strong, continuing July’s success by remaining well above the $1,800 threshold. On August 6, however, both gold and silver plunged, falling $80 and $2, respectively, and continued downward for the remainder of the week. Gold eventually bottomed out around $1,730. As we’ve seen in recent months, the price of gold outperformed silver as gold’s price seems more tightly linked to its fundamental benefit in times of uncertainty while silver is more closely linked to demand.
Fed Chair Jerome Powell’s clarification of the Fed’s tapering timeline and what it includes caused metals to flourish. Gold and silver rose 2% and 4% the week of the Jackson Hole Symposium. For gold, this was enough to eke out a win in August, for silver, it was too little too late. Equities rose, too, as Powell’s commitment to keeping rates low helped boost stocks to a positive month across the board. The Nasdaq rose 4.0% and the Dow gained 1.2%. The S&P notched its seventh consecutive positive month for its best run since 2018, gaining 2.9%