The metals and mining industry has strong seasonal tendencies. The mining industry’s seasonality is primarily driven by gold prices, which can be seen in the gold futures and spot markets. The seasonal tendencies of gold are driven by demand. Gold demand varies throughout the year depending on seasonal factors. These factors are Indian wedding season, Diwali, Christmas, Holiday Shopping, New Year’s celebrations, and Muslim holidays.
It’s difficult to quantify past events/data in a meaningful way in order to forecast future trends. We do not trade based on gold seasonality or data. But we have developed a methodology for forecasting the price based on historical events. There is no direct way to exchange the instrument using this tool. The gold seasonal pattern may not always repeat, or someone looking to trade based on seasonal may cut their investment. The tool is only used to improve the quality of our analysis and forecasts.
Our strategy is to look for historical gold and silver charts on a yearly, quarterly, and monthly basis. For example, according to thirty years of data, September is the strongest month for gold seasonal trading. However, this is not always the case. September is also the month when prices can plummet dramatically due to high panic selling, as happened in September 2011. There is some knowledge hidden behind the door that must be considered when analyzing and forecasting gold moves based on gold seasonal tendencies.