Gold settled higher as inflation concerns and weaker Treasury yields lured buyers back to the safe-harbor asset. The news boosted gold prices as investors tend to purchase gold to hedge against inflation.  Declining yields on Treasurys also encouraged investors back into the gold market. Gold continue to attract long-term buyers, with open interest in June 2011 and December 2011 contracts gaining ground in recent days. Gold opened the day at 20511. A bounce after solid employment data took us to an intraday high of 20644. Dollar strength and a weaker treasury market encouraged selling in the metal, taking us to a low of 20502. Finally gold settled the day at 20615.Now support for the gold MCX is seen at 20530 and below could see a test of 20445. Resistance is now likely to be seen at 20672, a move above could see prices testing 20729.

Trading Ideas:

Gold trading range is 20445-20729.

Gold yesterday settled higher on inflation concerns

Gold looks to take support at 20530 and resistance at 20672.

Spdr gold trust holding fell by 1.52 tonnes to 1293.78 tonnes