Gold fell as a euro-zone financial-stimulus package calmed investors' need for a safe haven.  But the metal was able to hold above 17500 as some of the initial optimism on the bailout wore off and as participants began to mull the implications of higher European government spending on gold's traditional role as an inflation hedge. Gold opened on MCX at 17882, as world equities rallied on the EU pledged loan fund. As North American equities rallied, gold quietly range traded the session between its low of 17358 and its high of 17882.  The metal closed at 17590.Now support for the gold MCX is seen at 17343 and below could see a test of 17089. Resistance is now likely to be seen at 17867, a move above could see prices testing 18137.

Trading Ideas:

Gold trading range is 17089-18137.

Gold fell as a euro-zone financial-stimulus package calmed investors' need for a safe haven

Support for the gold is seen at 17540 and resistance is at 17850.

SPDR gold trust holdings rose by 3.65 tonnes to 1192.15 tonnes

BUY GOLD JUNE ABV 17600 SL 17550 TGT 17635-17680-17725.MCX