At the beginning of November, I took a look at the seasonal price trends for gold. Back then, it seemed that November and December were historical good months for gold. This came as a relief following gold’s seasonally weakest month of October.
Gold came through big time in November rising from $730.75 to $814.50, representing a gain of $83.75 or 11.46%. This marked gold’s biggest monthly gain since September 1999 when gold rose 20.68%.
Will the trend continue? In the past ten years, gold has shown an average gain of 1.67% for the month of December, rising 6 times and falling 4 times. Today on the first day of December, gold is showing a 2% loss, dragged down with the stock markets.
If December doesn’t come through, there’s always January to look forward to. In the past ten years, the first month of the year has produced an average gain of 2.15%. Much of gains came in recent years. Two out of the past three years, gold has posted a gain of over 10% in the month of January.
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