Gold bulls have been flying high for the better part of two months as the yellow metal has jumped from $1500 on July 1 to $1800 at the end of August. Of course, the best months for gold buying haven't even begun yet. As most know by now, September begins Indian festival and wedding season, which historically has provided a nice seasonal (if not psychological) boost to gold prices. As captured by the World Gold Council's chart below, gold prices have tended to rise in September and November through February (in rupees) coinciding with Indian wedding season.
In 2009 and 2010 the seasonality seemed to hold, which has lent credence to the idea that Indian monsoon season is worthy of a trade.
Can monsoon wedding season make it a hat trick and propel gold three years in a row? The answer, of course, lies with Diwali.