The beginning of October saw Gold
making a bearish
break of the descending triangle
following positive data from the US to support a December rate hike. Since then, Gold
has slowly retraced and is now hovering around the 200 day moving average. As India begins its Diwali festival and continues through the wedding season, Gold
demand is expected to increase. Along with this, a rate hike is not expected in the US until after the presidential election. This supports a short term upwards movement of gold
and a retest of the broken trend line
before a drop towards 1200 dollars.