In our recent post on Facebook, we talked about a potential long opportunity as Gold reacted from the key $1450.00 support zone. In this blog post, we will go into depth on why we believe Gold could reach the recent weekly swing highs once again.
Taking a look at seasonal reports, Gold typically rises through January and February. However, in the past 4 years, Gold has started the bull run in December with 2017 and 2018 seeing rises of $70-$80.
The seasonal chart above shows the price movement of Gold on a pre-election year for the last 45 years. As you can see, the price typically rises from December through to the end of February.
Looking at the chart in 2018, we can see that the price gained through December, continued through January and found a top through Feb. It is important when looking at seasonal data to look back at the information more recent to keep up to date.
Again in 2017, we saw the price dipped initially to the key support zone before rallying $80 through December alone.
Looking at Gold prices now we can see the price has re-tested the recent weekly June highs and is forming a double bottom pattern. We typically see these patterns when the price begins a new bullish phase. The price has also broken through a resistance trendline adding further confluence to a move higher.