Gold buying tends to increase in August due to several factors that influence demand August marks the beginning of the wedding season in India, one of the largest consumers of gold. Indian jewelers and households buy gold in preparation for weddings and festivals, which drives up demand. Following August, the festival season in India includes significant holidays like Diwali, during which gold is traditionally purchased. Preparations for these festivals start early, contributing to increased gold buying in August. Furthermore, Investors often reassess their portfolios during the summer. As August is a quieter month for financial markets, investors may turn to gold as a safe haven, especially in times of economic uncertainty or geopolitical tension. Historical trends and technical analysis can also influence buying patterns for gold. As gold prices have shown a seasonal increase in August in previous years traders anticipate this and buy in expectations of rising prices.

Over the last 25 years gold has gained on average 1.52% from August 01 through to August 31. The largest gain was over 12% in 2011 and 2019 saw 9% gains.

The two strongest months for gold are August and January, so remember to always give your attention to gold over the summer months.

Sign up here for thousands of more seasonal insights just waiting to be revealed!

• The major trade risk here is that previous price patterns do not necessarily repeat themselves each year as gold’s prices will also be heavily influenced by the path of the USD and US monetary policy as well as US inflation expectations.

Remember, don’t just trade it Seasonax It!