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A Study of the Seasonality in Gold Prices

Precious Metals Outlook: A look at seasonality suggests the best of 2010 is in the offing…

My last post, A Trifecta of PBOC Announcements Gives Owners of Gold a Winning Ticket, focused on the compelling fundamental developments emerging in the precious metals arena. We have witnessed a 3.5%+ increase in Gold prices since that post on August 4th.  Today, I’d like to add the proverbial fuel to the fire by examining the seasonality of Gold. Spend some time studying the chart below and meet me on the other side…


The monthly chart of GLD clearly illustrates the seasonal strength of Gold prices from September to January. As the yellow highlights indicate, often aggressive moves higher in gold prices begin in September. Furthermore, by studying 2008 we can see even during a difficult year, one fraught with mass financial disaster, Gold prices were higher at the end of the Sept.-Jan. time period.

The key take away from this post: Please hold on to the bar!

About Bret Rosenthal

Interpreting the news that moves markets. Principal of RCM, LLC, and founding partner of the Fortune's Favor Family of Funds
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