Gold rose as concern that Europe’s fiscal crisis will deepen boosted demand for the metal as a haven. Irish government bonds declined after Moody’s Investors Service cut Ireland’s credit rating. The agency said this week it may downgrade Spain. Gold is settled the week at current 20519. This is the second consecutive down week off of record 20924 high. Last weeks price candle warned of a possible reversal in the metal. The lower close this week confirms an end to the bull move. We suggest that the market will probe lower next week to former lows 20200 and 20000. Topside resistance is found at this week’s high of 20720. Now support for the gold MCX is seen at 20437 and below could see a test of 20354. Resistance is now likely to be seen at 20576, a move above could see prices testing 20632.

Trading Ideas:

Gold trading range is 20354-20632.

Gold rose as concern that Europe’s fiscal crisis will deepen boosted demand

Gold looks to take support at 20440 and resistance at 20580.

Spdr gold trust holding rose by 15.18 tonnes to 1298.94 tonnes