Chart of the Day: Gold's Golden Stretch

Back in May, when gold had breached $2,000 per ounce, Chief Trend Strategist, Matthew Carr warned of a brief pullback on the horizon. And that’s exactly what we saw. 

Traditionally, June is a terrible month for gold.

But right now, we’re in the precious metal’s golden stretch. Six of gold’s best months of the year are July, August, September, November, December, and January.

Now, this isn’t a fluke or an anomaly. It’s classic supply and demand economics. Over the last three decades, China and India have emerged as major gold consumers. In fact, China’s gold demand has exploded five-fold since the 1990s and is the world’s largest consumer of the precious metal.

And both countries have holidays and traditions steeped in gold in the months ahead.

For example, 50% of all India’s consumer gold purchases take place during the country’s wedding season, which stretches from November to February. At the same time, there’s the annual Diwali celebration that falls between mid-October and mid-November. Evidence of how powerful this buying spree is, in the fourth quarter of 2022 – which was a record for gold – 35% of jewelry demand was simply India’s wedding season and Diwali.

Stay tuned… In the next few hours Tom Gentile will be unveiling his favorite gold play!