Why Gold Investors Should Really Like August and September

 | Jul 26, 2017 | 1:00 PM EDT
  • Comment
  • Print Print
  • Print

With July winding down, it's a key time for investors to look at gold and other precious metals.

Gold and silver have enjoyed another solid, if unspectacular week, with both moving higher as earnings season approached.

For gold specifically, it continues to remain solidly within the trading range established earlier this year. We anticipate gold moving back to the high end of its trading range established earlier this year.

Why?

August and September have historically been excellent months for price appreciation in gold. As the summer doldrums come to a close, a few factors seem to come into play during this time each year.

Fair Skies and Smooth Sailing Ahead?

Investors and asset managers are looking at solid gains so far this year and assessing the risk to both equity and bond positions. Locking in gains and reallocating funds to the safe haven of precious metals seems to be a prudent choice at this point in time.

Markets also seem to anticipate jewelry demand from both the Indian wedding season and our own holiday gift season in the West. This helps to put a solid bid under gold as the physical metal comes into higher demand.

Institutions and traders also like to get in on the trade as they anticipate the interest coming from other market participants.

With many factors contributing to this seasonal move in gold, we believe the odds are that the yellow metal will be higher in price vs. the dollar by Sept. 30.

So, with this in mind, it may be wise to keep some powder dry and buy the dips as the opportunities present themselves in precious metals.

Columnist Conversations

Foot Locker's (FL) less than expected quarterly earnings set off a round of selling the entire athletic appare...
View Chart »  View in New Window » Gold has met the first upside target off the last setup zon...
View Chart »  View in New Window »
View Chart »  View in New Window »

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.