Gold ended lower settling below $1,100 an ounce after a sharp fall in U.S. new home sales fed concerns among bullion investors. Gold opened at 16595 and fluctuated within a tight price range in early morning trading, just above the 16411 intraday low as the market awaited Fed Chairman’s testimony. Bernanke’s statement on a “nascent” recovery and commitment to record low interest rates quickly sent the dollar falling again below 81 mark. Investors virtually ignored the plummet in U.S. new home sales and put back the risk trades as equity, energy and base metal prices climbed. Gold prices rose to an intraday high of 16570. Dollar recovered slightly towards the end of the trading day, causing the metal to close at 16488. Now support for the gold MCX is seen at 16387 and below could see a test of 16286. Resistance is now likely to be seen at 16613, a move above could see prices testing 16738.

Trading Ideas:

Gold trading range is 16286-16738.

Gold ended lower settling below $1,100 after a sharp fall in U.S. new home sales

Bernanke’s statement on recovery & commitment to record low interest rates created pressure on $.

Gold as told below 1098$ looks weak same seen yesterday still looks still 1092-1086$.

SELL GOLD APR BELOW 16460 SL 16498 TGT 16426-16390-16342.MCX (EVE VOLATILE)