Gold snapped back after initially declining with the euro amid sovereign risk fears. Those same fears ended up prompting the bounce in the metal as buyers returned their focus to gold's traditional role as a haven in times of turmoil. Gold opened on MCX at 17180. The metal traded lower early in the session as renewed contagion worries pushed the EUR lower after Moody’s announced they might cut the sovereign rating of Portugal. Stops were triggering around 17150 taking us down to an intraday low of 17102. Recovering on fund buying, Gold reached its intraday high of 17354. Range trading for the remainder of the session saw Gold close at 17314. Now support for the gold MCX is seen at 17159 and below could see a test of 17005. Resistance is now likely to be seen at 17411, a move above could see prices testing 17509.

Trading Ideas:

Gold trading range is 17005-17509.

Gold ended higher after declining earlier as traders bought the metal as a safe heaven.

Support for the gold is seen at 17260 and resistance is at 17360.

SPDR gold trust holding rose by 7 tonnes to 1166 tonnes

BUY GOLD JUNE @ 17250-275 SL 17218 TGT 17310-17356.MCX