Gold Bullion Averages Biggest Seasonal Gains in September Over Past 20 Years

Friday, August 26, 2016
By Paul Martin

By: GoldCore
GoldSeek.com
Friday, 26 August 2016

Gold bullion has had its biggest gains in September over the past 20 years. Seasonally gold is entering the sweet spot with the Autumn being gold’s best season and with September being gold’s best month in the last 20 years.

Given the backdrop of one of the most uncertain macroeconomic, systemic, geopolitical and monetary outlooks both the U.S. and the world have ever seen, we are likely to see gold do well in its traditionally seasonal strong period. Possibly, the most vitriolic, hateful and divisive election in U.S. history is set to be witnessed and this will likely lead to considerable volatility in markets and should see the dollar come under pressure. The election date is Tuesday, November 8, 2016.

The spring and summer months frequently see seasonal weakness, since gold became a traded market in 1971. Gold bullion often sees periods of weakness in the summer doldrum months of May, June and July.

August tends to be a better month for gold but not this year with gold down nearly 2% in dollar terms, 3% in euro terms and 1.8% in sterling terms.

Gold’s traditional period of strength is from August through to January and February with weakness and a correction frequently seen in October. Thus, August is generally a good time to buy after the seasonal spring and summer dip.

This year gold rose in June and July before and after the Brexit market shock and on very robust global demand. Gold has dipped this August, despite August along with September and November being some of the best months to own gold. This is seen in the charts and tables showing gold’s monthly performance over many different time frames. Gold’s weakest months since 1975 have been June and July (see table below) and buying gold in August has generally been a good trade.

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