Gold edged higher after data showed improved manufacturing output in the US, signaling more traction for the global economic recovery. Gold futures rose 30 percent in 2010, climbing to a record $1,432.50 an ounce on Dec. 7, amid Europe’s debt woes and low U.S. borrowing costs. Gold opened at its intraday high of 20740 on modest activity, before easing on dollar strength to a low of 20735. Range trading for the rest of the session in a very thin holiday market took us to a close of 20788 now technically market is trading in the range as RSI for 18days is currently indicating 59.25, where as 50DMA is at 20511.42 and gold is trading above the same and getting support at 20736 and below could see a test of 20684 level, And resistance is now likely to be seen at 20839, a move above could see prices testing 20890.

Trading Ideas:

Gold trading range is 20684-20890.

Gold edged higher after data showed improved manufacturing output in the US

Gold looks to take support at 20736 and resistance at 20840.

In spot gold looks to take support at 1406$ and resistance at 1424$

SELL GOLD FEB @ 20800 SL 20842 TGT 20768-20735-20702.MCX

Gold / Silver ratio is at 46.03. Yesterday Gold FIX $ has closed lower at : 1405.5