There is some seasonal help for gold, but that is tough to bank on with bullion being battered in the fashion it has been. As ETF Trends reported on Wednesday, seasonal factors could bring some upside for GLD this month. In August, gold has finished in positive for four of the past five years. Gold has also produced a 6% average return over the past five years. Additionally, miners also generated outsized returns during August after recovering from a July sell-off. [August Sector Ideas]
The good news is, as Goldman Sachs points out to Barron’s, that this is the bottom of the commodities cycle. Buying opportunities at cycle bottoms do not come along very often.
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