[video] Quick Take: Gold Trades Beyond Syria
NEW YORK ( TheStreet) -- September is seasonally the strongest month for gold, but this time, there are some potentially impactful events. Giving TheStreet's Joe Deaux the full rundown is Mike McGlone, research director at ETF Securities.
McGlone said that political unrest in the Middle East could obviously be a big driver in terms of precious metal prices this month. On average, gold appreciated 3% in the month of September since 1990.
But there's also the nonfarm payrolls report for the month of August due out Friday and the debt ceiling debate is just around the corner as well.
In August, the nonfarm payrolls report came in a little weak for the month of July, paving the way for silver and gold to go higher. This month could have a similar effect, depending on the outcome, he said.McGlone pointed out the correlation between gold prices and the debt ceiling, noting how gold tends to move higher as the debt ceiling increases. But much of the talk has been of silver lately. The metal has been outperforming gold and he attributed much of this move to the simple fact that silver got hit harder earlier this year. McGlone added that ETF holdings have been strong for silver and the U.S. mint demand is at a record annual pace. He concluded that both silver and gold had a solid start to the month and is now awaiting the jobs report at the end of the week. Video
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