Today's AM fix was USD 1565.50, EUR 1281.10 and GBP 1011.96 per ounce.
Wednesday's AM fix was USD 1576.50, EUR 1284 and GBP 1012.91 per ounce.
Gold gradually ticked lower in Asian trading and has seen further slight weakness in European trading. Still robust physical demand is supporting gold at these levels and strong support is at the $1,500/oz level.
The period of seasonal strength for gold bullion has arrived.
Thackray's 2012 Investor's Guide notes that the optimal time to invest in gold bullion from a seasonal perspective is today, July 12.
The summer months normally see seasonal weakness and it is thus a good time to buy on the seasonal dip.
The Global and Mail reports that Thackray's 2012 Investor's Guide shows that the optimal time to invest in gold bullion for a seasonal trade is from July 12th to October 9th (see news).
"The trade has been profitable during 11 of the past 14 periods."
During the past 25 years, gold bullion has outperformed the S&P 500 Index by a very significant 4.7% during the period.
The Globe and Mail notes that "traditionally, advances in gold during its period of seasonal strength is attributed to precious metal fabricators in India who purchase bullion to make into jewellery for the Indian wedding season that starts in late October. India is the second-biggest consumer of gold jewellery in the world behind China."
The trend may also be due to more sophisticated investors using gold as a hedge and diversification and increasing allocations to gold during the late summer and early autumn months which traditionally see weakness in stock markets.
Timing markets is extremely difficult - even for the few successful traders. However, there are clear seasonal patterns that long term physical gold buyers can use to their advantage.
We continue to advocate accumulating physical gold bullion on dips and holding for the long term.
Indeed, part of your allocation to gold should be a permanent holding that you hold as you would a health insurance policy.
Gold will protect in the event of a geopolitical, macroeconomic, monetary or systemic event.