Gold fell to a one-week low and hovered above its lowest in two months after China's central bank raised lenders' required reserves for the fourth time in just over two months, vowing the fight against inflation would be a top priority. Gold is ending the week on a down note, for the second consecutive week. The weekly candlesticks indicate a trendless evolution with support coming in at 20100. This support looks strong however the evolution of the daily price action is indicating downside momentum is building on a weekly basis and that the next breakout will be lower. Now support for the gold MCX is seen at 20236 and below could see a test of 20212. Resistance is now likely to be seen at 20276, a move above could see prices testing 20292.

Trading Ideas:

Gold trading range is 20212-20292.

Gold ended the week down after China tightened bank reserves to rein in inflation.

Gold looks to take support at 20180 and resistance is at 20320.

SPDR gold trust holdings fell by 5.76 tonnes to 1259.33 tonnes.