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Seasonal Insights: Gold 23.12.20

Seasonal Insights: Gold 23.12.20

Seasonal Insights: Gold 23.12.20

in Weekly Forecasts

Gold in focus! Is this the perfect time to buy gold?

Gold tends to rise at this time of year due to strong demand from China for the Chinese Lunar New Year. Over the last 32 years gold has risen 21 times between December 23 and February 17. The average gain has been +2.85%. The largest gain was in the QE world of 2008 with a whopping +14.76% profit. With the Fed committing to ultra loose easy monetary policy is this the best time to buy gold now?

Trade Risks:

  • The main risk to this trade is if there is strong risk off trading heading into year end on the US stimulus bill not being passed.
  • Another key risk is a large increase in gold ETF selling.It has steadied recently, but an acceleration in selling could drag gold prices lower.
  • A cancellation of the Chinese Lunar New Year holiday.

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Legal Forms & Documents

Risk Warnings

Cookies Policy

Disclaimer: Any opinions made may be personal to the author and may not reflect the opinions of HYCM. All expressions of opinion are subject to change without notice. This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by an employee of HYCM, a third party or otherwise. Past performance is not an indication of possible future performance. Without the approval of HYCM, reproduction or redistribution of this information isn’t permitted.

Legal Information: HYCM is the trading name of Henyep Capital Markets (UK) Limited, HYCM (Europe) Ltd, HYCM Limited and Henyep Capital Markets (DIFC) Limited for which the Henyep Capital Markets group is holding company and its assets are a controlling equity interest in them.

* Cryptocurrencies are not available for trading under HYCM (Europe) Limited and Henyep Capital Markets (UK) Limited (retail clients only).

*Any opinions made in this material are personal to the author and do not reflect the opinions of HYCM. This material is considered a marketing communication and should not be construed as containing investment advice or an investment recommendation, or an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. HYCM does not take into account your personal investment objectives or financial situation. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of HYCM, a third party or otherwise.

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