I don’t like to spend a lot of time in the grocery store but I love the price sales, and gold’s superb seasonal price sale continues in orderly fashion.

Astute investors are now calmly booking fabulous gold and silver put option profits, and filling their “grocery carts” with modest amounts of quality mining stocks.

Double-click to enlarge this beautiful daily gold chart.

Gold often rallies significantly from early July. There is strong price support in the $1225 -$1250 zone and major rallies tend to begin at this type of support.

Some analysts have noted a good statistical correlation between full moons and gold price rallies. That might rise an eyebrow or two amongst rational thinkers, so I’ll shed some light on why the correlation exists. 

First, the bulk of global price discovery for gold occurs on the COMEX, LBMA, and SGE. 

Gold price rallies generally begin when Western commercial traders anticipate a pick-up in Asian physical market demand. Since they supply most of the gold that Asia imports, they are keenly aware of any uptick in demand.

In India, full moons are generally auspicious days. Tuesdays are generally inauspicious days. Gold often declines on Tuesdays and has great rallies from full moons (but not always).

The next full moon is June 28. I expect that to roughly mark the beginning of the next major gold price rally. Ideally, it will begin from the $1225 – $1250 support zone.

While the correlation between gold price action and Hindu religion inauspicious and auspicious time frames is quite tenuous, it will become much stronger as the Indian economy grows vastly bigger.

India’s banking system is undergoing a positive overhaul, and the government has just committed to a program of enormous annual infrastructure spending over the next decade.

The AIIB will likely play a key role in making that happen. The AIIB is the “Asian Infrastructure Investment Bank”. It’s led by China, and India is the main recipient of its funds.