October Gold:

Bulls have something to cheer about, but hurdling above $841.10 only to fail, is negative. Daily chart is  getting bullish with higher highs and higher lows, and the weekly chart turned sideways. Bulls must hold  uptrend line (green) or I can see a retest of the lows.

Gold has the same fundamentals affecting crude oil, and looks positive in the near term but longer term might not shine bright. This market has flushed out all the weak longs when major supports were taken out and is  trying to build as positive case for a rally. Open interest has climbed 18,225 while crude oil OI has declined.

Demand is better than crude with seasonal festivals in India and the Middle East. Ganesh Chaturthi is on  Wednesday while Navatri begins on Sep 30th. Ramadan will end on Oct 2nd and Diwali is Oct 28th. Since July 15 gold has come down over $160 from that high and that might be enough to spur demand in this strong  time for buying.

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