Why Gold Investors Should Really Like August and September

 | Jul 26, 2017 | 1:00 PM EDT
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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.


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.

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