Seasonal influences for gold equities and related ETFs also clicked in earlier than usual. Normally seasonal influences appear in the second half of July and continue until December (including negative performance in the month of October. Tip off that seasonal influences had arrived earlier than usual was strength in gold stocks relative to gold, an encouraging sign for both. Short term momentum indicators are overbought, but have yet to show signs of peaking.

Gold bullion was late to arrive at the recovery party. It finally clicked in technically late last week Normal period of seasonal strength according to Thackray’s 2011 Investor’s Guide is from July 12th to October 9th. Short term momentum indicators have bottomed and are recovering from oversold levels. Gold moved above its 50 day moving average yesterday. Strength has occurred despite gains in the U.S. Dollar. A break above resistance at an all time high will attract technical buying Preferred strategy is to hold/buy on weakness.

Gold in Canadian Dollars has a similar technical profile

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