Seasonal Gold Demand

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