Gold hit their lowest level in more than three weeks, falling sharply for a fourth-straight session as expectations of a dollar bounce and easing inflation sent bullion investors racing to cut positions. Gold opened around 17375 and was range bound through the morning. As the metal reached its highs of 17390 it began succumbing to heavy selling pressure.

A collapse in oil prices inspired yet another steep sell off in afternoon trading, which was supported by continued intra-day strength in the USD. The metal ultimately closed the day at 17089, close to its lows. Now support for the gold MCX is seen at 16953 and below could see a test of 16816. Resistance is now likely to be seen at 17308, a move above could see prices testing 17526.

Trading Ideas:

GOLD TRADING RANGE IS 16800-17350.

GOLD YESTERDAY ENDED LOWER DUE TO EXPECTATION OF BOUNCE IN DOLLAR

HOLD / ADD GOLD DEC SHORT @ 17120 SL 17186 TGT 17065-17022-16988-16925.MCX

GOLD IS HAVING SUPPORT AT 17020 AND RESIST AT 17140.

SPDR GOLD TRUST UNCHANGED AT 1,116.25 TONNES