Gold is coming off its worst quarter since 2013. But finally, FINALLY, it seems precious metals are stabilizing after a sharp drawdown. An easy way to play a potential rally is to buy a basket of junior miners with the VanEck Junior Gold Miners ETF (GDXJ), suggests Sean Brodrick, editor at Weiss Rating Daily.
Gold remains roughly 20%-25% below its January highs. But it just logged a roughly 2%-3% weekly gain, while silver rallied about 6%-7% on short-covering and macro relief. While that’s not much of a bounce…yet…it may be the start of something bigger. I’m talking about seasonal trends.
(Editor’s Note: Sean is speaking at the 2026 MoneyShow/TradersEXPO Orlando, scheduled for Oct. 5-7. Click HERE to register.)
This chart of seasonal percentage moves in gold futures shows it usually bottoms in early July. It then rallies through the end of the year.
Are we going to see the same thing this year? After all the sound and fury of the Q1 sell-off, gold still has a structurally bullish setup resting on a three-legged catapult:
- Ongoing central bank buying
- The Fed backing off its tough-on-inflation stance
- A tight mine-supply pipeline after a decade of underinvestment.
With GDXJ having pulled back to a 50% retracement of the big rally that started last year, any market technician will tell you this is a good place for the next big rally to start. Do we know that will happen for certain? No. But we do know that seasonality favors gold right now.
So for many reasons, I think gold — and miners — deserve a place in your portfolio now.
