Gold fell amid lowered risk appetite and worries about the Obama administration's plans to restrict the size and risk taken by banks, but the metal was able to pare losses as the U.S. dollar eased. The metal tested its 100-day moving average of 1086.15 yesterday, but failed to break through. A small positive in what has otherwise been a difficult two-days for gold bulls. The near-term outlook has turned increasingly bearish as the metal first dropped through several layers of support. Support from here comes in first at the 100-day moving average, followed by the December low of 1074.88.Now support for the gold MCX is seen at 16366 and below could see a test of 16203. Resistance is now likely to be seen at 16691, a move above could see prices testing 16853.

Trading Ideas:

Gold trading range is 16300-16750.

Gold fell due to worries about the Obama administration's plans

Gold is having support at 16480 level on MCX and 1088$ in spot.

Resistance for the gold is at 16560 and 1098$ in spot

SELL GOLD @ 16580 SL 16634 TGT 16556-16522-16470-16434.MCX