Gold rallied boosted by a sinking dollar as some investors bet the Federal Reserve's next round of monetary stimulus could be much larger than previously thought. In the third quarter, they bought 28.3 metric tons of gold via physically backed exchange-traded funds. This brings total holdings to a new record of 2,070.1 metric tons, worth $87 billion at the quarter-end spot gold price of $1,307, according to a report from the World Gold Council. Gold began the day at 19453. Dipping to its low of 19380, the metal rebounded on strong fund buying as the dollar weakened. Reaching its high of 19618, the metal’s upward momentum subsided and gold eventually closed the day at 19603. Now support for the gold MCX is seen at 19449 and below could see a test of 19296. Resistance is now likely to be seen at 19687, a move above could see prices testing 19772.

Trading Ideas:

Gold trading range is 19296-19772.

Gold prices bounced as expectations for monetary easing collided with stronger economic data

Investors bought 28 tonnes of gold through ETF’s in third quarter - WGC.

Spdr gold trust holdings fell by 5.17 tonnes to 1293.10 tonnes.