Gold ended slightly down, erasing initial gains, as a flat dollar and larger-than-expected decline in producer prices failed to give the market a firm direction. Gold opened at 16740 and made a high of 16803. The metal was offered as the dollar went on the offensive, finding moderate support near 16700. This level could not hold as gold later retreat to an intraday low of 16655. It traded erratically within a narrow range as the metal was unable to find a direction and finally settled at 16687. Now support for the gold MCX is seen at 16627 and below could see a test of 16567. Resistance is now likely to be seen at 16775, a move above could see prices testing 16863.

Trading Ideas:

Gold trading range is 16567-16863.

Gold ended slightly down as decline in producer prices failed to give a firm direction

Support for the gold is at 16590 and resistance is at 16812 level

Gold in spot taking support 1114$ and resistance is at 1132$

BUY GOLD APR ABV 16700 SL 16650 TGT 16745-16785-16830.MCX (EVE VOLATILE)