Gold were unable to hold onto early gains, ending lower as investors cashed in on a record-setting rally. Traders are particularly sensitive to booking gains throughout December as year-end profits are a performance benchmark in the investment community. This leaves gold prices in a precarious state, as each move higher is met by a wave of sales. Earlier in the day, gold prices rallied as U.S. President Barack Obama announced a deal with Republican leaders in Congress to extend tax cuts for two years.  Now support for the gold MCX is seen at 20561 and below could see a test of 20444. Resistance is now likely to be seen at 20860, a move above could see prices testing 21042.

Trading Ideas:

Gold trading range is 20444-21042.

Gold ended lower as investors cashed in on a record-setting rally

Gold looks to take support at 20600 and resistance at 20780.

Spdr gold trust holding fell by 0.3 tonnes to 1297.73 tonnes