Gold fell as the U. S. dollar strengthened on increasing economic optimism, continuing a trend of gold as a counterpoint to the greenback. Gold opened at 16670 on MCX. US GDP fell short of expectation causing the dollar to retreat and gold rallied, peaking at 16714.

However the metal could not sustain this level as profit taking pulled it lower. The dollar later went on the offensive and gold continued to tumble, falling to an intraday low of 16447. The metal turned bid and climbed from its lows and managed to make back ground during the remainder of the session, closing at 16600. Now support for the gold MCX is seen at 16460 and below could see a test of 16320. Resistance is now likely to be seen at 16727, a move above could see prices testing 16854.

Trading Ideas:

GOLD TRADING RANGE IS 16300-16900.

GOLD FELL AS THE U. S. DOLLAR STRENGTHENED ON INCREASING ECONOMIC OPTIMISM

YESTERDAY AS PER EXPECATION GOLD FELL TODAY AGAIN ON JUMP TILL 16700-16780 LEVEL WILL SELL.

SPDR GOLD TRUST HOLDINGS REMAINED UNCHANGED AT 1136.71 TONNES.

RISKY TRADER BUY GOLD @ 16580-590 SL 16550 TGT 16612-16638-16656-16680. MCX BTST