Gold settled lower after weaker-than-expected U.S. economic data sapped desire for riskier holdings and encouraged buying of the dollar. In addition to dampening risk appetite, U.S. consumer confidence data also reinforced low inflation expectations, hurting gold as an inflation hedge. Now technically market is trading in the range as RSI for 18days is currently indicating 49.21, where as 50DMA is at 16665 and gold is trading below the same and getting support at 16510 and below could see a test of 16428 level, And resistance is now likely to be seen at 16720, a move above could see prices testing 16848. Spread between Gold APR & JUN contacts yesterday ended at 76, we have seen yesterday that the gold market had traded with a negative node and settled -0.61% down. Spread yesterday traded in the range of 71 - 76.

Trading Ideas:

Gold trading range is 16428-16848.

Gold settled lower after weaker-than-expected U.S. economic data sapped desire for riskier holdings

Gold is taking support at 16530 on MCX and 1098$ in spot.

SPDR gold trust holdings fell by 0.91 tonnes to 1106.99 tonnes

BUY GOLD APR @ 16600-610 SL 16570 TGT 16634-16656-16670.MCX (EVE WEAK)