Darin Newsom, president of Darin Newsom Analysis, studied seasonal trends in the gold market and found that the precious metal had followed the seasonal trends of the past five years at the beginning of the year. However, this pattern was broken in May.
“The US dollar index was moving in a medium-term uptrend on its weekly chart,” he explained. "In years like this, when we see numerous counter-seasonal moves, it is usually associated with a deviation from 'normal' from a fundamental point of view."
Since May, gold has moved away from these trends over the past five to ten years. Newsom's analysis shows that the seasonal patterns of the last five to ten years show that gold usually peaks in August and September, and the next rally begins in early December and lasts until the first months of the new year.