Gold's Summer Price Springboard

1oz 1984 Krugerrand Transferred from en.wikipedia (Photo credit: Wikipedia)

With the price of gold (and silver) recently difficult to predict, what should we expect for the rest of the year.

If seasonal trends in gold hold true, then we should expect an upward trend after the typical June / July lull until the end of the year. How much might gold rise from August to December?

The average gain after the June/July swoon has been 11.46%.  In other words, on average, just better than 2/3 of all annual gains over the past ten years in gold have come in the last five months of the year.

Will the August to December time period be typical? There is no way to know. But, the seasonal June to July lull should give anyone pause before making a significant gold purchase before August, as the trend is often down.

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