The festive season in India will peak in November with Dhanteras & Diwali considered as auspicious for Gold Bullion & jewelry buying or gifting. Weddings also take place during this period, and Gold jewelry is an essential part of the gifting and this may act as a backstop against steeper Gold Price dips. Gold Demand is expected to rise in Q4 2012 due to weaker prices based on the stronger INR against the US Dollar and stronger jewelry and investment purchases, according to the All India Gems & Jewelry Trade Federation. Post the US Presidential Elections in November & based on the open ended dynamics of the latest quantitative easing program- the QE3, we see the possibility for Gold Prices reaching & also surpassing the 2011 high of $1925, once the psychological range of $1800 to $1855 is breached. Spain also may soon make a formal request for a Bailout which may add to the Global stimulus, triggering Gold Prices to spike upside.
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