NEW YORK (Scrap Register): January has been a good month for gold over the last decade, and this year has not been an exception, said MKS (Switzerland) S.A.
Comex December gold was trading up $2.90 to $1,188.40 around 8:10 a.m. EST, which was a 0.2% gain for the day but leaves the metal up 3.2% so far in 2017.
“So far this month, gold has behaved in line with historical trends,” said Alex Thorndike, senior precious-metals dealer with MKS. “Over the past 10 years January has offered the best monthly average return of plus 4.4%, with only three negative Januarys over that period.”
“With the impending inauguration of President-elect Donald Trump and possible safe-haven flows related to that, seasonal Chinese demand and a stalling equity rally and bond sell-off, January so far is poised to be another good month for the yellow metal,” he added.
He puts the area around $1198 to $1200 an ounce as the next major resistance for gold, while pegging support $1,175-80 and $1,155.