Gold prices have recently stayed above the mid-August lows and a move close to $1,300 per ounce could trigger more buying. Rising interest rates have also stymied gold this year, but real rates are stabilizing, which could benefit bullion.
Some market observers believe commodities can bounce back in 2019 with gold and oil looking particularly attractive.
“In the past 10 years, January through February has been the strongest period for gold prices, and miners have reaped the benefit, according to Bloomberg’s seasonality chart of spot gold and gold-linked ETFs,” reports Bloomberg.
For more information on the gold market, visit our gold category.
Tom Lydon’s clients own shares of GLD.