Gold dropped Friday on a US dollar rally as worries for debt-stricken Greece and a surprise move by China to tighten money supply took a toll on sentiment. For the week, the precious metal was 2 per cent higher, partially recovering from a two-day sell-off late last week driven by technical weakness and heightened fiscal fears for some European countries.

Gold opened at 16489 and climbed marginally higher persistent buying carried the metal to a high of 16509. Light selling as the session unwound pulled it from its highs, finally settling at 16503. Now technically market is trading in the range as RSI for 18days is currently indicating 47.57, where as 50DMA is at 16679.56 and gold is trading below the same and getting support at 16492 and below could see a test of 16480 level, And resistance is now likely to be seen at 16512, a move above could see prices testing 16520.

Trading Ideas:

Gold trading range is 16480-16520.

Gold dropped as worries for debt-stricken Greece and a surprise move by China to tighten money supply.

Gold has sustained a multi session uptrend off of the February 5th low, with support holding in at $1076.

Overall gold below 1096$ look to take support at 1072-1056$ for this week

BUY GOLD APR @ 16500-522 SL 16465 TGT 16548-16575-16602.MCX

GOLD / SILVER RATIO IS AT 70.42. YESTERDAY GOLD FIX $ HAS CLOSED LOWER AT : 1078.25