A February follow-up
Gold has been on a nice run. It's up 8.5% after falling to $1240 in mid-December and it touched a 16-month high.
After rising above last year's best levels, it's now butting against the 2016 peak of $1375 and has been consolidating below.
Can it break higher? The seasonals are one reason it could. I wrote about the positive gold seasonals for January and that was a trade that paid off. The trend continues in February.
Over the past 10 years, gold has averaged a 2.3% gain in Feb but there are a few stumbles in that period. One thing to watch is trading around (and especially after) Chinese New Year, which falls on Feb 16 this year with holidays beginning a day earlier.
Overall, the gain in gold is part of a broad seasonal positive theme for metals in the month. So if you don't like gold specifically, maybe another metal is more to your taste.
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