Gold decline as some investors sell after the metal’s rally to a record and as other commodities drop, also pressure seen after European Central Bank President Jean-Claude Trichet sounded less hawkish than expected on euro zone interest rates and after official data showed U.S. initial jobless claims jumped to an eight-month high last week. Shanghai Gold Exchange also raised margin requirements. SPDR Gold Trust, said its holdings extended losses and fell 0.9 percent to 1,208.419 tonnes by May 5, from 1,219.94 tonnes on May 4. The holdings hit a record at 1,320.436 tonnes on June 29 of last year.Now technically market is trading in the range as RSI for 18days is currently indicating 48.74, where as 50DMA is at 21472.9 and gold is trading above the same and getting support at 21557 and below could see a test of 21376 level, And resistance is now likely to be seen at 22064, a move above could see prices testing 22390.

Trading Ideas:

Gold trading range is 21376-22390.

Gold ended lower as panic selling snowballed across the commodities sector.

Gold looks to take support at 21557 and resistance at 22064.

Spdr gold trust holdings fell by 11.52 tonnes to 1208.42 tonnes