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Kensho Stats

Gold due for rebound from 1 month correction, if history is any guide

Melted gold flows out of a smelter into a mould of a one kilogram bar at a plant of gold refiner and bar manufacturer Argor-Heraeus SA in the southern Swiss town of Mendrisio.
Arnd Wiegmann | Reuters
Melted gold flows out of a smelter into a mould of a one kilogram bar at a plant of gold refiner and bar manufacturer Argor-Heraeus SA in the southern Swiss town of Mendrisio.

After another weak day Monday, gold is down 10 percent in one month as investors continue to flee safe havens following the election of Donald Trump.

History shows the selling in the metal may have gone too far, too fast.

Using hedge fund analytics tool Kensho, we found gold fell 10 percent or more during one month 10 times in the last 20 years.

Here's what happened to bullion and other related securities, on average, in the following month.


Gold bounced back 70 percent of the time, posting an average gain of almost 2 percent.

Smaller gold mining stocks, as measured by the VanEck Vectors Junior Gold Miners ETF, make up the gold-related asset with the biggest comeback gain, on average.

But it was also the riskiest, rising in the month following a gold slide just 50 percent of the time.


Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.