Gold recovered its most of the losses as the U.S. dollar eased slightly, with the metal making several big swings in reaction to moves in outside markets while awaiting a series of major U.S. economic reports. Gold opened at 16789 and traded quietly as the session started. The dollar later went on the offensive against most major currencies causing gold to tick lower. The metal continued to retreat as oil prices tumbled, triggering stops and gapping to an intraday low of 16655. However the metal managed to turned bid as good buying took it higher. Gold stayed buoyant for the rest of the day, rallying on the back of strong investor demand and finally closing at 16793.Now support for the gold MCX is seen at 16683 and below could see a test of 16572. Resistance is now likely to be seen at 16876, a move above could see prices testing 16958.

Trading Ideas:

Gold trading range is 16500-17000.

Gold recovered its most of the losses as the U.S. dollar eased slightly

SPDR Gold Trust Holdings settled steady at 1115.88 tonnes.

Gold after correction look strong but eye on China credit policy and yen move

BUY GOLD FEB ABV 16810 SL 16776 TGT 16834-16855-16872.MCX