Gold ended higher on lingering jitters about European sovereign debt.  It was notable that gold was able to hold in positive territory since the European worries boosted the dollar strongly. China approved the country's first mutual fund that bets on gold prices, as inflation fears fuel demand for the precious metal. Gold opened at 20507. Dollar strength saw the metal drift lower along with equities eventually reaching 20459. A small recovery in equities as the dollar stabilized saw renewed buying interest take gold to its intraday high of 20615. The metal ended the day quietly trading to its close of 20599.Now support for the gold MCX is seen at 20500 and below could see a test of 20402. Resistance is now likely to be seen at 20656, a move above could see prices testing 20714.

Trading Ideas:

Gold trading range is 20402-20714.

Gold ended higher on lingering jitters about European sovereign debt

Gold looks to take support at 20500 and resistance at 20660.

Spdr gold trust holdings rose by 1.52 tonnes to 1286.60 tonnes