Gold Retracement Before Drop

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.