Right on its first trading day, August once again lived up to its reputation as a good month for gold’s price performance. Statistically, August is now the third best month within the calendar year. Gold investors and those who invest in gold mines and mining developers therefore have every reason to look optimistically towards the coming weeks.
Friday’s sharp rise in the gold price was due to the news. The monthly unemployment figures in the USA were a severe disappointment, and at the same time, statements from US President Donald Trump made the market fear his known unpredictability. The result was a rapid rebound from US$3,269.24 on July 31 to US$3,348.82 on Friday.
Even though gold had shown weakness and slipped towards the end of July, investors have no reason to be dissatisfied with the price performance in July, as overall, the month ended with a gain of 3%. Now the statistically third best month of the year has begun, and with it grows the hope that the extended sideways movement that the gold price has undergone in recent weeks could soon be over.
The Stronger Euro Slightly Clouds the Sentiment in Europe
Calculated in euros, however, the balance sheet does not look quite as good, because due to the euro’s strength against the US dollar, the gold price at the end of July was only 0.3% above the level of the end of June. But just as a single swallow does not make a summer, the price development of a single month says comparatively little about the gold price, its successes, and its potential.
This becomes clear if one takes a step back and compares, for example, the price at the end of July 2025 with the gold price from twelve months ago. A year ago, a troy ounce of gold cost only 2,237 euros. Thus, calculated in euros, we look back at a proud price increase of 29% within just twelve months.
What can now be expected for August? A highlight that everyone in the gold market is also watching will be the annual meeting of central bank governors in Jackson Hole. Important monetary policy decisions could also be made here this year. Statistics dating back to 1970, when the US dollar was decoupled from gold on August 15, show an average price gain of 0.98% for August.
Thus, August is currently the third best month of the year for gold. A year ago, August was still in fourth place because February was slightly better. On August 31, we will know whether August was able to defend its bronze position in the statistics. The positive start to the month is at least encouraging and gives hope for a good price performance.
