Gold climbs for seventh straight day
But still stuck in the annual summer doldrums

(USAGOLD – 7/8/21) – Gold climbed for the seventh straight day in overseas trading as the bond market strengthened, the dollar lost ground and capital shifted in the direction of safe-havens. It is up $13 at $1818.50. Silver is down 6¢ at $26.15. As mentioned yesterday, gold has fallen into an odd pattern of late in which it posts strong gains overnight only to give back roughly half those gains during U.S. trading hours. Yesterday’s trading was no exception. Though gold has been in a firming trend over the past several days, it is still down from the year’s high at over $1900 posted in late May – part and parcel of being stuck in the annual summer doldrums. (Please see our Chart of the Day immediately below.)

“Gold, silver, and their miners’ stocks suffer their weakest seasonals of the year in early summers,” writes analyst Adam Hamilton in a recent Seeking Alpha report. “With traders’ attention normally diverted to vacations and summer fun, interest in and demand for precious metals usually wane. Without outsized investment demand, gold tends to drift sideways dragging silver and miners’ stocks with it. Long feared as the summer doldrums, they’ve really moderated in recent years…June and early July, in particular, have often proven desolate sentiment wastelands for precious metals, devoid of recurring seasonal demand surges. Unlike most of the rest of the year, the summer months simply lack any major income-cycle or cultural drivers of outsized gold investment demand. Yet three recent summers have been big exceptions to these decades-old seasonals, and 2021’s could still prove another.”

Chart of the Day

Line chart showing the seasonal trend for gold 10 year average

Chart courtesy of GoldChartsRUs • • • Click to enlarge

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