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Gold will be attractive one this month with the increase in global prices in recent times, said experts in their outlook for the yellow metal.

"Gold has picked up in price action massively, rising by nearly $60 /oz in the last two weeks alone to trade around $1800 levels. The rise in prices is largely due to the dovish commentary by the Fed on its monetary policy," said Colin Shah, Founder & MD, Kama Jewelry.

According to Shah, the metal looks set to extend recent gains, due to a combination of softer inflation prints, weaker economic data points, and a 90 per cent chance of the Fed hiking interest rates by 50 bps on December 14.

The inflation in the US, even though moderating, is still too high for the average inflation target of two per cent set by the Federal Reserve, said Quantum Mutual Fund.

Therefore, although the quantum of rate hikes would be less, there would still be a hike of at least 100 basis points more in the next three months.

In addition, monetary policy is expected to remain restrictive even after the final rate hike. Furthermore, this was just the first data point that showed signs of easing, however, the Federal Reserve would look for consistency in future data prints before making a pivot, Quantum Mutual Fund said.

That said, our medium to long-term view on gold remains bullish (with short-term volatility) because of the recessionary concerns surrounding the global economy, the fund house said.