Gold ended firm on Saturday as traders covered their short position on weekend. Gold prices plummeted Friday as potential moves by China to curb inflation prompted investors to cash in on the metal's recent record price. Gold is showing as a down week at current 1365. Last week we made a new record high at 20529 before correcting lower. The 20050 level provides support as it is the 23.6% Fibo of our 20000 to 20500 up move.  Below 20000 we see the 4 month channel support at 19800 followed by last week’s low of 19300. The 38.2% Fibo level comes in at 19240. The trend remains bullish for Gold but Friday's aggressive Rs.300 drop warns of another move lower next week. Now support for the gold MCX is seen at 19986 and below could see a test of 19838. Resistance is now likely to be seen at 20301, a move above could see prices testing 20468.

Trading Ideas:

Gold trading range is 19838-20468.

Gold ended firm on Saturday as traders covered their short position on weekend

Gold looks to take support at 20040 and resistance at 20260.

In spot gold looks to take support at 1356$ and resistance at 1380$.