Gold prices edged higher supported by the euro's recovery from a three-week low versus the dollar, and as a further ratings downgrade stoked concerns over euro zone debt. Gold typically comes under pressure from a softer euro and consequently stronger dollar, but its usual close inverse relationship with the U.S. currency has weakened this year as both assets have benefited from the euro zone debt crisis. Gold opened the day at 20469, before fund selling after mixed economic data took the metal to an intraday low of 20436. Sporadic physical interest took us back to opening levels but volumes soon faded and range trading commenced. Quiet trade for the remainder of the session took us to a close of 20479. Now support for the gold MCX is seen at 20445 and below could see a test of 20412. Resistance is now likely to be seen at 20503, a move above could see prices testing 20528.

Trading Ideas:

Gold trading range is 20412-20528.

Gold prices edged higher supported by the euro's recovery

Gold looks to take support at 20410 and resistance at 20530.

Spdr gold trust holdings fell by 3.65 tonnes to 1284.97 tonnes