Gold cut initial gains to end just a tad higher as the dollar rose in choppy trade following disappointing U.S. home sales data, denting bullion investor sentiment. Gold opened at 16875 and retreated as the trading day began, finding support near 16840. Better than expected factory orders helped equities rally and gold followed. It climbed to an intraday high of 16939 before the metal began to soften. The dollar advanced causing gold to weaken further as the session unwound, reaching a low of 16814 and later closing at 16833. Now support for the gold MCX is seen at 16785 and below could see a test of 16737. Resistance is now likely to be seen at 16910, a move above could see prices testing 16987.

Trading Ideas:

Gold trading range is 16600-17050.

Gold ended steady as dollar rose following disappointing U.S. home sales data

SPDR Gold Trust Holdings settled steady at 1128.75 tonnes.

Gold is getting resistance at 16870 level and 1124$ in spot

SELL GOLD FEB @ 16900-920 SL 16956 TGT 16870-16856-16822-16790.MCX