NEW YORK (Commodity Online): October tends to be a seasonally negative month for gold but November a seasonally bullish one, said Zurich based Investment Bank UBS in a snippet.

December gold last traded up $8.00 at $1,720.00 an ounce on the Comex division of the New York Mercantile Exchange. Spot gold was last quoted up $10.90 at $1,720.50.

“Monthly returns since the mid-1970s show an average gain of about 1.4% in November, the second strongest month in terms of seasonality,” the bank added.

The Swiss bank continued that, “this coincides with the most active period for physical markets, particularly in India. Despite this year’s general disappointment with Indian gold demand, we still expect a further continuation of the seasonality trade and therefore expect stronger gold prices in November, especially once we get the U.S. election out of the way. A President Obama re-election would be particularly supportive, not necessarily because he remains in office, but because the market uncertainty will be removed.”

Then participants can focus on the Dec. 11-12 meeting of the Federal Open Market Committee, with UBS economists expecting the Fed to announce that Operation Twist will be replaced with a fourth round of quantitative easing, UBS concluded.