Gold Summer Doldrums 6

June 12, 2023

by Adam Hamilton Zeal LLC

Gold, silver, and their miners’ stocks suffer their weakest seasonals of the year in early summers. With traders’ attention normally diverted to vacations and summer fun, interest in and demand for precious metals usually wane. Without outsized investment demand, gold tends to drift sideways to lower dragging silver and miners’ stocks with it. Long feared as the summer doldrums, they can offer good buying opportunities.

This doldrums term is very apt for gold’s traditional summer predicament. It describes a zone surrounding the equator in the world’s oceans. There hot air is constantly rising, spawning long-lived low-pressure areas. They are often calm, with little prevailing winds. History is full of accounts of sailing ships getting trapped in this zone for days or weeks, unable to make headway. The doldrums were murder on ships’ morale.