The latest gold price action is a near-perfect reflection of the current market fundamentals.

Gold has arrived at my $1220 – $1200 conservative investor buy zone.

The market is seasonally soft in the summer months, but two key price drivers are poised to create the next rally.

The first is the US jobs report.  It’s scheduled for release on Friday at 8:30AM.  Market participants are going to be looking at wage price inflation as much as they are looking at the total number of jobs created.

Gold has a rough general tendency to soften ahead of this report, and then rally strongly following its release. 

The $1220 – $1200 support zone is an ideal price area for gold bugs to buy in anticipation of a post jobs report rally!

This chart should be used by all gold bugs as a key reference chart to understand gold’s seasonality. 

In a nutshell, the summer is the best time to accumulate gold, and February is a great time to book some profits.

The current price softness is seasonally normal, and it’s exacerbated by the decision of bullion banks to halt imports into India.

They decided to halt imports until they got clarification about applying the new GST regime to the gold market.  It appears that June imports were only about five tons.

It’s almost impossible for gold to rally with Indian bullion banks importing no gold, but there is some great news.

Imports are set to resume next week, and that resumption will coincide with upside pressure on the gold price that typically follows the US jobs report release.

“I personally feel India is poised for double-digit growth, GST is an aid to it, even without GST we would have reached there. If you ask my personal judgment, post 2019-2020 we are poised for double digit growth.”  – Rakesh Jhunjhunwala, one of India’s top investors, July 4, 2017.