Seasonal Gold Demand

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Seasonal Demand for Gold

  • The first three months of the year tend to be the best period for the year for gold demand.
  • Key demand factors are post-holiday jewelry restocking, post-Ramadan demand, the Chinese New Year and the wedding season after the harvest period in the Indian sub-continent.
  • After weak seasonal demand for gold in Q2 and Q3, October was the strongest month as pre-holiday season inventory buildups usually helps gold demand.
Source: RBC Capital Markets through Martin Murenbeeld & Associates Inc.;
from US Bureau of Census Program

Seasonal Response of Gold Stocks

  • Gold equities tend to lag the movement of gold in January and show seasonal strength in February and March.
  • A mixed response from gold stocks in the summer months is often followed by a rally in September in anticipation of stronger pre-holiday demand for the commodity.
  • Gold stocks are often the victims of tax-loss selling in the fourth quarter of the year.
Source: RBC Capital Markets through Martin Murenbeeld & Associates Inc.;
from US Bureau of Census Program

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