Gold settled positive as monetary tightening in Singapore sent investors out of the U.S. dollar and into the perceived hedge of the metal. Gold did pare its gains from its intraday high as the dollar moved up from its lows. Gold opened higher at 19930. The metal trade to its high of 20028 shortly after the open as the dollar declined. Selling interest as the dollar recovered, quickly took the metal to its low of 19818 triggering resting stops around the 19850 level. Range trading for the remainder of the session saw gold close at 19948. Now support for the gold MCX is seen at 19835 and below could see a test of 19721. Resistance is now likely to be seen at 20045, a move above could see prices testing 20141.

Trading Ideas:

Gold trading range is 19721-20141.

Gold settled positive due to monetary tightening in Singapore

U.S. gold imports fell 32.3% in August from previous month, and was down 14.1% from previous year

Spdr gold trust holdings rose by 19.14 tonnes to 1304.34 tonnes