Gold closed higher on a continuation of start-of-year investment buying, a soft U.S. dollar and strong import data from China that generally reflected well on commodity demand and thus helped risk appetite. Gold gapped higher, triggering stops overnight and opened at 16911 on MCX. Good investor demand carried the metal to an intraday high of 17104, however this move was short lived as it turned heavy. Oil prices pulled back which inspired dealers to sell the metal, finding support near 17020. It rallied briefly but more selling entered the market and gold retreated for the remainder of the session. Light buying near the latter end of the day helped the metal take back ground before settling at 17031.Now support for the gold MCX is seen at 16927 and below could see a test of 16822. Resistance is now likely to be seen at 17120, a move above could see prices testing 17208.

Trading Ideas:

Gold trading range is 16750-17250.

Gold closed higher due to soft U.S. dollar and strong import data from China

SPDR Gold Trust Holdings settled steady at 1119.54 tonnes.

Gold is getting resistance at 17080 level and 1156$ in spot

BUY GOLD FEB @ 16950-970 SL 16890 TGT 16998-17022-17056-17100.MCX