Gold ended above $1,070 an ounce gaining 1 percent, on improving economic sentiment as the euro rose after reports of a possible European bailout for debt-stricken Greece. Gold opened at 16260 on MCX. It was a quiet market during the early morning as light selling pulled the metal lower. It retreated to 16225 and later traded sideways within a range. However from the euro zone update and recovery in equities and base metals causing some short covering in the metals. We traded up to an intraday high of 16383. A small correction as the session unwound pushed the metal off its highs, finally settling at 16319. Now technically market is trading in the range as RSI for 18days is currently indicating 41.13, where as 50DMA is at 16731.16 and gold is trading below the same and getting support at 16235 and below could see a test of 16151 level, And resistance is now likely to be seen at 16393, a move above could see prices testing 16467.

Trading Ideas:

Gold trading range is 16151-16467.

Gold turned higher in Europe market session as the dollar's retreat versus the euro.

Gold bounced on improving economic sentiment & on report that European bailout for debt-stricken Greece.

Overall gold below 1094$ look to take support at 1036 & 1022$ for this week

BUY GOLD APR @ 16260-280 SL 16200 TGT 16322-16356-16390.MCX (EVE WEAK)