Gold yesterday traded in the tight range and settled flat at 20426 with a marginal gain of 0.13% pressure was seen in the market as the release of significantly better-than-expected data on U.S. jobless claims fuelled optimism over the US economic recovery. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.91%. A stronger dollar tends to pressure gold, as it curbs its appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies, though the relationship has weakened in recent weeks, technically market is trading in the range as RSI for 18days is currently indicating 50.68, where as 50DMA is at 20527.86 and gold is trading below the same and getting support at 20340 and below could see a test of 20252 level, And resistance is now likely to be seen at 20500, a move above could see prices testing 20572.

Trading Ideas:

Gold trading range is 20252-20572.

Gold edged higher as speculation Egyptian President Hosni Mubarak was to step down

Gold is having support at 20440 and resistance at 20512 level.

Spdr gold trust holdings fell by 0.91 tonnes to 1225.53 tonnes.