On average, gold has gained 1.87% through the month of August. The months of July and August tend to be strong for gold seasonally and the appeal of gold could potentially be set to grow further over the coming months.

Gold has been billed as an inflation hedge, and if yields move lower with the USD then that can provide support for gold. Gold investors will be looking carefully at Fed policy, US economic data, and inflation expectations over the coming weeks to gauge gold’s directional bias, but remember that gold has a seasonal bias for the upside.

Major Trade Risks: Seasonal patterns do not always repeat themselves. Also, if US rate expectations signal an even higher rate that could be a natural headwind for gold.

HYCM clients can access the Seasonax product in order to analyse over 25,000 currency pairs, indices, commodities, as well as individual stocks. Please contact your account manager for a free trial. Certain products & services mentioned herein may or may not be available to all clients depending on which HYCM Capital Markets Group entity their trading account(s) adheres to.