Inflation concerns and continued beginning-of-year investment flows from funds enabled gold to hit their strongest level in nearly three weeks. Gold opened on at 16839 and made a low of 16755. Gold gathered momentum as the dollar retreated, finding resistance near 16870. Oil initially tumbled on the back of much greater than anticipated weekly inventories, but later made back lost ground and gold followed. Investors continued to push the metal higher, peaking at 16906. It ticked marginally lower near the tail end of the session, finally settling at 16865.Now support for the gold MCX is seen at 16778 and below could see a test of 16691. Resistance is now likely to be seen at 16929, a move above could see prices testing 16993.

Trading Ideas:

Gold trading range is 16600-17050.

Gold rose due to weaker dollar and better physical buying boosted investor sentiment.

SPDR Gold Trust Holdings fell by 5.88 tonnes and settled at 1123.87 tonnes.

Gold is getting resistance at 16930 level and 1142$ in spot

BUY GOLD FEB @ 16750-780 SL 16700 TGT 16822-16856-16900-16934.MCX