Gold prices keep fluctuating, what is the outlook?

Gold prices have managed to hold support above $2,500 an ounce despite some technical selling pressure , according to Kitco . Looking ahead, some analysts say the precious metal could face challenges, as September was one of the “worst” months for gold in years.

Gold prices have held their ground so far. December gold futures traded at $2,528.40 an ounce, up 0.21% on the day.

In a recent note, Nicky Shiels, Head of Metals Research and Strategy at MKS PAMP, noted that since 2009, gold prices have fallen 2.4% in September. Meanwhile, analysts at Bloomberg noted that since 2017, gold prices have fallen 3.2% in September.

September wasn’t just a bad month for gold, silver was also a bad month. Over the past 15 years, silver fell 3.7% in the final month of the third quarter.

Analysts also pointed out that September is typically a “weak” month for stocks, but it has been surprisingly strong for the US dollar.

Recorded at 1:30 a.m. on September 5, the US Dollar Index measuring the greenback's fluctuations against 6 major currencies was at 101.325 points.

Given gold 's more than 20% gain this year and high valuations in the stock market, it's no surprise investors are cautious as summer draws to a close, Shiels notes.

Investors are currently focused on the US Federal Reserve (FED) expected to begin its highly anticipated easing cycle later this month. Although world gold prices usually fall in September, the precious metal rebounded strongly at the end of September. Therefore, many experts still have confidence in gold prices in the coming time.

"Futures prices have risen an average of 13 times over the past 15 years, and typically rally after a brief pause in early November," said Phillip Streible, chief market strategist at Blue Line Futures.