India's festival demand likely to sparkle 'November rally' in Gold : CNBC polls

NEW DELHI (Scrap Monster) : Gold prices has had a fair run over the last couple of days. The Indian festival and wedding season demand is likely to lift the gold prices higher. The two recent polls conducted by the CNBC see ‘November rally’ in the making.

The latest weekly gold sentiment survey by CNBC shows that 52% (12 out of 23 respondents) expect the gold price to see a modest rally next week. Only 39% (9 out of 23) predict fall in prices, while 9% (2 out of 23) see gold hovering around current levels. Also, as per IG Markets’ latest positioning data, 67% expect gold prices to glitter while 33% expect decline in prices.

According to CNBC’s weekly forex sentiment survey, 89% (24 out of 27 respondents) expect the greenback to slide this week. Only 7% (2 out of 27) believe that dollar will gain, while 4% (1 out of 27) expect the dollar to trade at current levels. With gold prices having a track record of moving in opposite direction of the US Dollar, CNBC expects the precious metal to stay upbeat.

The latest gold analysis report by BofA Merrill Lynch states that November is usually a strong month for gold prices due to excessive physical demand for the metal during festival and wedding seasons in India. As per the report, gold is poised to make an up move to the levels of $ 1,350 to $ 1,400 an ounce by end-November.

The analysts at Morgan Stanley too predict a lift in gold prices especially during the Dhanetras and Diwali season. The retail demand for gold in India is likely to shoot up during this period.