Gold closed lower in reaction to strength in the U.S. dollar that was encouraged by soft European economic data and ratings concerns. Much of the selling was described as an unwinding of bullish positions ahead of the approaching year-end. Gold opened at 17588 and came under pressure, selling off to its lows of 17384.

The metal then traded largely sideways leading up to the fix. A mid day rally in equities carried the metal to its highs of 17648. However, the rallied proved to be short lived, as the price collapsed back down towards its lows, where it ultimately closed at 17445.Now support for the gold MCX is seen at 17337 and below could see a test of 17228. Resistance is now likely to be seen at 17601, a move above could see prices testing 17756.

Trading Ideas:

GOLD TRADING RANGE IS 15200-15700.

GOLD CLOSED LOWER IN REACTION TO STRENGTH IN THE U.S. DOLLAR

BUY GOLD FEB ABV 17475 SL 17420 TGT 17510-17544-17575.MCX

GOLD IS HAVING SUPPORT AT 17386 AND RESIST AT 17565.

GOLD SPDR HOLDINGS FELL BY 13.72 TONNES AND SETTLED AT 1116.25 TONNES.