Gold ended weaker touching a near three-month low as a dollar rise and uncertainty about how U. S. President Barack Obama's proposal to limit risk taking by banks could affect gold trading. Gold opened at 16411 on MCX. Jobless claims came in higher then expected and gold initially rallied, peaking at 16454.

Profit taking entered as equities and base metals reacted to the negative data. Some range trading around at 16300 until equities tumbled causing renewed selling interest in the metal. Resting stops were triggered below 162850 taking us to a low of 16217 before good buying helped the metal make back ground, finally settling at 12280. Now support for the gold MCX is seen at 16181 and below could see a test of 16080. Resistance is now likely to be seen at 16418, a move above could see prices testing 16554.

Trading Ideas:

Gold trading range is 16000-16550.

Gold ended weaker as a dollar rise and uncertainty about U. S. President Obama's proposal

Gold technically holding the important support at 1072$ a break will find support at 1056$

China 2009 gold output rises 11.3% to 314 tons

SELL GOLD FEB @ 16300-325 SL 16380 TGT 16272-16254-16211.MCX