Gold prices fell as an extended fall in U. S. Treasury prices fueled profit-taking from bullion's record run by investors seeking better yield returns. Gold has lost some safe-haven appeal as, for the first time in weeks, euro zone debt concerns were placed on the back burner and investors focused on U. S. economic fundamentals in a thinning market. Gold opened the day at 20631 and made a high of 20690. Selling resumed as treasuries sold off again, taking us through opening levels and eventually to a low of 20378. The metal recovered inline with base metals and energy taking us to a close of 20549. Now support for the gold MCX is seen at 20388 and below could see a test of 20227. Resistance is now likely to be seen at 20700, a move above could see prices testing 20851.

Trading Ideas:

Gold trading range is 20227-20851.

Gold prices fell as an extended fall in U. S. Treasury prices fueled profit-taking

Gold looks to take support at 20460 and resistance at 20640.

Spdr gold trust holding fell by 2.43 tonnes to 1295.30 tonnes