The January effect on the price of gold
by Peter Degraaf, Gold Seek:
In this essay we will present the expectation for the price of gold to rise during January and February, based on seasonal trends. Charts are courtesy Stockcharts.com unless indicated.
The energy for a rise in gold prices comes from at least four different sources.
#1 U.S. Federal Government deficits.
This chart courtesy Federal Reserve Bank of St. Louis and Mybudget360.com shows the widening of the U.S. Federal Government deficit since 2008. The gap shows no signs of narrowing, as it requires increased taxation (which stifles economic activity), or decreased spending (something Mr. Obama and most politicians find hard to do). Deficits are a source of energy for precious metals (as printing presses are used to make up the shortfall).
#2 Real Interest Rates.
2013-01-18 11:05:15
Source: http://sgtreport.com/2013/01/the-january-effect-on-the-price-of-gold/
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