Disclosure: No position currently
I like seasonal patterns. One of the most reliable lately has been that gold bottoms around middle of December each year (a couple times in November) and then finds some rally legs in January. Why this has happened is anyone's guess... Some say it's because all the holiday gold jewelry buying worldwide, or recent dollar seasonality, or demand in India for weddings and such, or even the tax loss scenario - since the yellow metal has been in decline and you get the tax loss then buying pop in January (which is another one of my favorite seasonal trades in small cap stocks). At any rate a good trading vehicle for this (short term) is UGLD - a 3X gold long.
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Paul SaadSenior Manager, Paul Saad and Associates, LLC Archives
May 2020
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