Gold yesterday dipped after opening higher retesting 20000 mark below as rising equities and hopes for further economic recovery in the United States prompted some investors to shift to riskier assets, but lower prices could spur bargain hunting from jewellers. The safe-haven appeal of gold was also dented by easing tensions in Egypt after President Hosni Mubarak said he would surrender power in September, offering a mixture of concessions and defiance to Egyptians who marched a million strong to demand his 30-year-rule end immediately. Investors awaited the release of the ADP Employer Services report which could be supportive for U. S. stocks and the dollar if the numbers were better than expected. Most recent U. S. indicators have suggested the economy is picking up steam. Now technically market is trading in the range as RSI for 18days is currently indicating 38.05, where as 50DMA is at 20613.44 and gold is trading below the same and getting support at 19994 and below could see a test of 19857 level, And resistance is now likely to be seen at 20249, a move above could see prices testing 20367.

Trading Ideas:

Gold trading range is 19857-20367.

Gold edged down as equities gained and worries about the unrest in Egypt ebbed

Gold looks to take support at 20060 and resistance at 20180 level.

Gold holdings in ETF of Zurich Cantonal Bank edged 0.2% higher in the week to Jan. 28.

SELL GOLD APRIL @ 20180-200 SL 20256 TGT 20138-20090-20025.MCX

Gold / Silver ratio is at 46.82. Yesterday Gold FIX $ has closed lower at : 1331.5