Gold retreated yesterday in the face of a strengthening U.S. dollar. The metal has recently hit a string of records as the dollar has weakened ahead widely anticipated monetary easing by the Federal Reserve. Expectations of this so-called quantitative easing, which could include the purchase of Treasury’s, have been a strong support of gold as a currency and inflation hedge, helping send the metal to a record last week. Gold opened at 19678. Reaching its high of 19709 as the dollar weakened, the metal soon gave up its gains as equities declined and the dollar recovered, trading to its low of 19632. Range trading for the remainder of the session took gold to its close of 19655.Now support for the gold MCX is seen at 19622 and below could see a test of 19588. Resistance is now likely to be seen at 19699, a move above could see prices testing 19742.

Trading Ideas:

Gold trading range is 19588-19742.

Gold retreated yesterday in the face of a strengthening U.S. dollar

Gold looks to take support at 19622 and resistance at 19699.

Holdings in gold ETF rose 38,632 troy ounces to 5.961 million ounces at Zurich Cantonal Bank.