Gold settled positive after bouncing off support just above the $1,100 level. The metal saw earlier pressure on concerns China will move to tighten monetary policy to stave off inflation. Gold opened at 16488 on MCX. It was a choppy start to the session, spiked to a high of 16563 before being swept lower, reaching 16440. It traded erratically within a range as the metal could not decide on a direction. It later turned bid on the back of investor demand, carrying gold higher. Resistance was established near 16540 and the trading day unwound near its open at 16526. Now support for the gold MCX is seen at 16456 and below could see a test of 16387. Resistance is now likely to be seen at 16579, a move above could see prices testing 16633.

Trading Ideas:

Gold trading range is 16387-16633.

Gold settled positive after bouncing off support just above the $1,100 level.

Support for the gold is at 16470 and resistance is at 16570 level

In spot gold is having support at 1103$ and resistance at 1116$.

BUY GOLD APR @16480-500 SL 16430 TGT 16522-16556-16594.MCX (MKT WILL BE VOLATILE TODAY)