The Golden Season

The Golden Season

Does it make a difference when you buy gold? There is a saying in the investment community that gold is stronger in the second half of the year. Is it true?
Below is a seasonal chart of the gold price. Unlike normal charts, this seasonal chart illustrates the average performance of an asset price in the course of a year. The horizontal axis depicts the time of the year, while the vertical axis shows the average price performance. In this case, the prices have been averaged for the past 20 years.

Gold-Spot

Gold price in USD per ounce, seasonal trend over the past 20 years. Gold begins to rise in early July Source: Seasonax

The seasonally strong period is highlighted in dark blue on the chart. It begins on July 6th and ends on February 24th of the following year. The average gain of the gold price in the seasonally positive time period amounted to 8.62 percent, or 13.90 percent annualized. So, the strong seasonal period for the gold price is now.

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