'Sell In May and Go Away'? No Way For Gold

The adage may once again prove axiomatic for other financial assets but not for gold

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The popular maxim, 'Sell in May and go away' is turning out to be true for most assets including stocks, bonds and even for several currencies. The maxim refers to the historically observed practice of a broad-based sell-off in financial assets as investors rush to book profit in May only to return to the markets after October. In other words, it refers to the past instances of the financial markets remaining weak and volatile between May and October. This year too, this maxim is proving to be on the mark as stock markets across the globe are witnessing profit booking by investors while the ruction in the bond market remains elevated as the interest rate cycle is yet to peak with central banks keeping the rate corridor open.