Cross Commodity Research Strategist at Societe Generale told 'Squawk Box' on Friday. "Heading into the month of November, it's the peak month for the Indian wedding and festival gold buying period so we might get slightly higher numbers from these levels.
Judging by the historical performance of gold in past Novembers, "we can expect about a 3.8 percent rise in the price over this month," Keenan said. "We might see a little bit more strength from these numbers, but frankly anything approaching $1,400 will be very surprising."
Credit Suisse precious metals analysts led by Tom Kendall said in a report last week that the macro environment has not shifted enough for gold to challenge its late-August high above $1,400 though UBS commodity analysts disagreed.
"The shutdown showdown and the short-term punt of the budget fight to early 2014 delays in our view the Fed taper from December 2013 to March 2014," said UBS' Dominic Schnider and Giovanni Staunovo. Taper delays will fuel "weakness in the U.S. dollar and the subsequent strength in the gold price could run further in the coming weeks,"they said, adding that if the euro tested $1.40 against the dollar, that "would facilitate a gold price move above $1,400."
As a gauge of investor sentiment, holdings in the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Shares, fell 0.2 percent or 1.8 tons last Thursday, Reuters reported. An outflow of more than 10 tons occurred last Monday followed by an increase of six tons on Tuesday.
(Read more: Dollar pain may spell further gains for gold)
Demand for gold coins issued by the U.S. Mint, however, jumped in October after the budget impasse hit confidence in the dollar, causing a scramble into hard assets.
"Current demand has exhausted existing supply which has led to a mini-surge in newly made American Eagle gold bullion coins," said Edmund Moy, Chief Strategist at Morgan Gold and a former director of the U.S. Mint. "October sales so far of 39,000 ounces have tripled from September sales of 13,000 ounces." This showed investors who previously questioned gold as a safe-haven are "rethinking their doubts."
— By CNBC's Sri Jegarajah. Follow him on Twitter