TANGIBLE INVESTMENTS - Los Angeles - by James O'Dell - Gold and Silver prices were higher on Wednesday with Gold gaining 0.20 percent to $1,283.30 an ounce, while Silver added 0.52 percent to $19.47 an ounce, after the dollar eased a bit, and the summer slump begins to draw to a close and making way for September, Gold's favorite month.
Historically, Gold performs best in September according to data supplied by Bloomberg, and it shows that bullion has gained an average of three percent each September over the past 20 years.
This beats by far Gold’s second best month, November, when prices rose an average 1.8 percent during the same period. A major reason, that buying increases in September is India’s festival period, which stretches from August until October and is closely followed by India's wedding season.
“Indian jewelers and dealers will be stocking up in the coming weeks, so it should affect prices,” said Mark O’Byrne, of GoldCore Ltd. “A lot of traders are aware of this trend towards seasonal strength, so that may contribute to higher prices. They tend to buy and that creates momentum.”
Meanwhile, on Wednesday, the Congressional Budget Office (CBO) forecast that the U.S. economy will grow by a mere 1.5 percent in 2014, after growing by just 0.9 percent during the first half. The CBO says the economy went into reverse from the very beginning due to an unusually harsh winter which negatively affected both consumer spending and factory output.
The CBO says growth recovered in the second quarter, and according to the government's first estimate, GDP advanced at an annual rate of 4 percent. That prediction will be revised on Thursday. The CBO also cautioned that over the long term "the large and increasing amount of federal debt would haveserious negative consequences."
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