Gold edged lower and settled with a drop of -0.85% to settled at 28939 pressured by a stronger dollar after elections in France and Greece demonstrated strong anti-austerity sentiment and raised questions on whether the euro zone will be able to battle the debt crisis. Weakness seen in gold on MCX as rupee posted its biggest gain against the dollar after the country postponed controversial rules on foreign taxation by a year, helping soothe worries about flows, Also government decided to scrap an excise duty on jewellery. Gold came under heavy selling pressure as investors cut their exposure to riskier assets amid concerns over the impact of weekend elections in France and Greece on the euro zone’s ongoing debt crisis. In Greece, neither of the country’s two pro-bailout parties secured enough votes to form a government, as voters favored smaller parties who campaigned against harsh austerity measures. The Greek election results threw the future of bailout agreement into doubt and fuelled fears over a possible Greek exit from the euro zone. Now technically market is trading in the range as RSI for 18days is currently indicating 54.85, where as 50DMA is at 28604 and gold is trading above the same and getting support at 28824 and below could see a test of 28708 level, And resistance is now likely to be seen at 29111, a move above could see prices testing 29282.

Trading Ideas:

Gold trading range for the day is 28708-29282.

Gold moved lower on stronger dollar amid concerns the euro zone’s ongoing debt crisis.

Gold dropped as investors cut their exposure to riskier assets amid concerns over the impact of weekend elections.

SPDR gold trust holdings rose by 0.90 tonnes to 1274.99 tonnes