The gold miners’ stocks have mostly been correcting in recent months, after blasting higher with gold last summer. While this necessary and healthy selloff to rebalance sentiment likely isn’t over yet, this sector is entering its strongest seasonal rally of the year. That portends big gains in coming months as the next bull-market uplegs in gold and its miners’ stocks get underway. These seasonal tailwinds amplify upside.

Seasonality is the tendency for prices to exhibit recurring patterns at certain times during the calendar year. While seasonality doesn’t drive price action, it quantifies annually-repeating behavior driven by sentiment, technicals, and fundamentals. We humans are creatures of habit and herd, which naturally colors our trading decisions. The calendar year’s passage affects the timing and intensity of buying and selling.