Gold ended down as tensions ran high after ratings agency Moody's said it had put Portugal on review for a possible downgrade. But gold recovered most of its losses as worries over further downgrades of some European countries' debt gave the metal a safety bid, though holiday-thinned conditions left prices in a slim range. Gold opened the day at 20581. The metal drifted upwards reaching an intraday high of 20599. Gold quickly turned lower as profit taking on dollar strength took the metal to an intraday low of 20510. Concerns over possible downgrading of Portugal’s debt saw gold recover to end the day at 20568.Now support for the gold MCX is seen at 20519 and below could see a test of 20470. Resistance is now likely to be seen at 20608, a move above could see prices testing 20648.

Trading Ideas:

Gold trading range is 20470-20648.

Gold ended down after ratings agency Moody's put Portugal on review for possible downgrade

Gold looks to take support at 20520 and resistance at 20610.

Spdr gold trust holdings fell by 0.91 tonnes to 1298.03 tonnes