Gold closed lower initially falling on book squaring as the market ignored a weaker U. S. dollar, with the metals' losses later accelerating when the dollar index turned slightly higher. Gold opened at 16780 and traded lightly within a range, ticking marginally higher, peaking at 16839.

However weaker equity markets and a rallying USD caused the metal to tumble, falling below 16780. Support was found near 16760 and it quickly turned bid, making back lost ground. This move was short lived as more selling entered the market, dragging gold to a low of 16709. It trade sideways for the remainder of the day, finally settling at 16730. Now support for the gold MCX is seen at 16680 and below could see a test of 16629. Resistance is now likely to be seen at 16810, a move above could see prices testing 16889.

Trading Ideas:

Gold trading range is 16500-17000.

Gold closed lower falling on profit booking as the market ignored a weaker U. S. dollar

SPDR Gold Trust Holdings rose by 0.91 tonnes and settled at 1133.62 tonnes.

Personal holdings make up for sharp fall in Gold Imports

BUY GOLD FEB ON DIP @ 16650-680 SL 16622 TGT 16705-16734-16756-16790. MCX