Gold maintained high levels even as the U. S. dollar gained ground. Investors were pulling out of the euro and other non-dollar currencies, which boosted the greenback. But at the same time they did not want to unwind commodities positions they've build up in recent weeks as they've moved out of the dollar and into hard assets, equities and higher-yielding currencies. Gold opened at 16943 and dipped marginally as the trading day began, reaching a low of 16927.

This move reversed, despite a rallying dollar and weaker equity markets and climbed for much of the session, finding mild resistance near 16970. It briefly retreated, but stayed well supported on the back of more fund buying, carrying gold to an intraday high of 17040. Light profit taking took it lower as the day unwound, finally settling at 17022. Now support for the gold MCX is seen at 16953 and below could see a test of 16883. Resistance is now likely to be seen at 17066a move above could see prices testing 17109.

Trading Ideas:

GOLD TRADING RANGE IS 16850-17200.

GOLD MAINTAINED HIGH LEVELS EVEN AS THE U. S. DOLLAR GAINED GROUND

BUY GOLD DEC ON DIP @ 16940-960 SL 16900 TGT 16985-17000-17034. MCX

GOLD PRODUCTION IN SOUTH AFRICA DECLINED 2.9% ON YEAR TO 54,110.9 KILOGRAMS

OVERALL MARKET IS IN OVERBOT CORRECTION IN THIS WEEK LIKELY BELOW 1127$ FOR 1104$

Commodity Analysis by Kedia Commodity, India's Premium Research House, Mumbai. Check out more commodity reviews at KediaCommodity. com