Time for gold to gain? [Video]

Giles Coghlan LLB, Lth, MA Financial Source

One of the headwinds for gold has been a strong USD. However, with the recent batch of USD weakness, as positioning looks quite stretched now, could this be the time that gold’s seasonals start to shine?

Markets have been expecting the Fed to hike interest rates this year from last year and it seems that the USD has passed near term peak bullishness. If real yields start to fall again, with the USD weakness, then gold’s seasonals could really accelerate.

Over the last 14 years, gold has risen 9 times and fallen 5 times. The average return has been +3.33%.

Major Trade Risks: The main risk to this seasonal pattern would be if the USD strengthens again and real yields start to rise sharply.

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Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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