Gold And Silver Prices Enter Weak Month According To Seasonality [SPDR Gold Trust (ETF), iShares Silver Trust (ETF)]

gold and silverGold Silver Worlds:  The statement in the title of this article is not meant to make a forecast or any forward looking statement. The point is that, based on seasonality, June is traditionally the weakest month of the year.

The two charts show seasonality of the gold price and silver price over the last 30 years. Dimitri Speck is the author of the charts (courtesy of SeasonalCharts). His analysis is based on 30 years of data.

The gold price, according to the seasonal pattern, is likely to hit the year’s bottom in the weeks ahead. Chances are high that a rally will ensue in the months ahead.

gold seasonals 30 years price

gold price seasonal

Silver has a similar seasonal pattern till June. As of July, however, the rally has not been as strong as in gold.

silver seasonals 30 years price

silver price seasonal

Interestingly, the authors at GoldCore looked at past year’s performance in gold and silver. The above-mentioned charts cover 2012 but not 2013. GoldCore writes: “Gold saw massive concentrated selling in April and further weakness in May – from $1,476/oz to $1,386/oz. Then June saw gold fall again, from $1,386/oz to the $1,200/oz level at the end of June which marked the end of the 2nd quarter, 2013. Gold then bounced sharply in July and August prior to giving up some of those gains in September, trading sideways in October and then trading lower in November and December prior to the what appears to be the second bottom – exactly at year end 2013.”

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