Gold gained as oil climbed on inventory data and the dollar weakened ahead of the Federal Reserve's interest rate announcement. The Federal Open Market Committee kept its rates unchanged. Gold opened at 17049 and traded lightly in a narrow range, reaching an intraday low of 17028. The metal later rallied on the back of stronger equity markets and base metals, gapping to a high of 17249. Investors took profit for the remainder of the session, taking out some of the longs.

It found support near 17156 and ticked sideways as the day unwound, closing at 17174. Now support for the gold MCX is seen at 17052 and below could see a test of 16929. Resistance is now likely to be seen at 17273, a move above could see prices testing 17371.

Trading Ideas:

GOLD TRADING RANGE IS 16950-17400.

GOLD GAINED AS OIL CLIMBED ON INVENTORY DATA AND THE DOLLAR WEAKENED

SELL GOLD FEB BELOW 17160 SL 17212 TGT 17138-17105-17065. MCX

THE FEDERAL OPEN MARKET COMMITTEE KEPT ITS RATES UNCHANGED

GOLD SPDR TRUST HOLDINGS ROSE BY 3.96 TONNES AND SETTLED AT 1120.51 TONNES.