Gold slid as spot prices were knocked by heavy liquidation ahead of an announcement on monetary policy from the Federal Reserve. Prices came under pressure from a firmer dollar but held in a fairly narrow range as trader’s awaited news on the scope and timing of the Fed's expected quantitative easing programme. They slid sharply as support levels gave way. Gold opened at 19671 achieving its intraday high of 19783. After settling into a range, fund selling after better than expected economic data quickly took gold lower. Triggering stops around the 19500 level, the metal eventually reached its low at 19310. Climbing higher as buyers gradually came back, gold ended the day at 19469. Now support for the gold MCX is seen at 19258 and below could see a test of 19048. Resistance is now likely to be seen at 19731, a move above could see prices testing 19994.

Trading Ideas:

Gold trading range is 19048-19994.

Gold slid as spot prices were knocked by heavy liquidation ahead of Fed announcement

Gold looks to take support at 19360 and resistance at 19540.

In spot gold gold looks to take resistance at 1362$ and support at 1336$.