Gold
ByIn the pasts posts, I recommended that investors should consider selling gold for the month of October and reentering the position at the beginning of November. The seasonal trade from July to September had produced a good profit and October is typically the worst month of the year for gold. As the U.S. dollar weakened in October gold remained firmly above the $1,000 mark. The fact that gold did not decline in the month that it typically has negative performance does not take away from a positive seasonal trend from the end of October to December. Gold typically performs poorly from the beginning of January into the early summer and is not a good seasonal trade. Remember to consider exiting the position in December.
Currently gold is trading at $1,096 with $1,000 acting as support. There is a possibility that the support line will be tested, but the expectation is that it will hold over the next few months and gold will be higher by the end of the year.
