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]
“With investor sentiment still skeptical, the supportive macro news flow could provide fuel for a rally in gold mining equities,” notes Sterne Agee.
Market Vectors Gold Miners ETF
Tom Lydon’s clients own shares of GLD.