Gold ended flat Saturday after some of the recent worries about Europe returned when ratings agency Fitch downgraded the debt of Spain. Gold closed the week higher at 1213$ compared to last Friday's close of 1182$. The bounce has been held to 1218, which is the 61.8% Fibo of the 1249$ to 1167$ drop.

The large dark candle from the previous week’s liquidation still overhangs the weekly chart. We suggest a period of consolidation before the market decides to either retest 1249$ or renew the downside push to 1147$ - 50% of three month range of 1045$ to 1249$. Now support for the gold MCX is seen at 18450 and below could see a test of 18432. Resistance is now likely to be seen at 18486, a move above could see prices testing 18504.

Trading Ideas:

Gold trading range is 18432-18504.

Gold ended flat Saturday after Fitch downgraded the debt of Spain on Friday

Support for the gold is seen at 18420 and resistance is at 18540.

U.S market will remained closed today on Memorial day.

BUY GOLD AUG @ 18390 SL 18340 TGT 18456-18490-18525.MCX