September is usually a seasonally strong period for gold due to buying ahead of a number of major gift-giving holidays around the world.
There is the autumn “wedding season” and Diwali festival in India, followed by Christmas and Hanukkah in a number of nations, then the Chinese New Year in early 2015.
In addition to wedding season and holidays worldwide, Indian farmers often look to gold when they sell their crop after the harvest. In the rural areas of India, there is little access to banking networks, so gold is used as a store of wealth, according to Reuters. And with half the population in India employed in agriculture, it’s no surprise that 60 percent of all the gold demand in the country comes from these rural areas.
People in both China and India have a “particular positivity around longer-term expectations for the gold price,” according to the World Gold Council (WGC). This is especially significant since India and China are the two largest consumers of gold.
For more on Gold’s price patterns during this time of the year: