Gold market trends and liquidity analysis

Gold prices experienced significant volatility and growth during August. After starting the month at a minimum of 4,055 USD per ounce on August 3, prices rose steadily, peaking at 4,652 USD on August 24. The month concluded with a price of 4,443 USD per ounce. This upward trend was influenced by economic factors in the United States, including a weaker labor market where non-farm payrolls fell by 23,000 jobs, contrary to expectations of an 80,000 increase. Such data reduced expectations for interest rate hikes by the Federal Reserve, which typically drives gold prices higher.

In terms of market liquidity, gold remains a highly liquid asset. Data from the London Bullion Market Association shows that in June, an average of 16.7 million ounces (valued at 70.9 billion USD) moved daily through London's physical gold settlement. The World Gold Council classifies gold as a liquid asset comparable to major global equity markets. While Bitcoin offers 24/7 trading, the total daily crypto market volume is estimated by the Bank for International Settlements to be between 70 and 90 billion USD, a figure comparable to the daily volume of physical gold in a single major hub.