Gold ended around two percent higher posting their biggest daily gain in three months, as a combination of oil rally, dollar weakness and strong U. S. data boosted bullion's investment appeal. Gold made a nice relief rally (+300) yesterday close at 16620. The metal managed to rally away from the major technical pivot of 16180. Topside resistance was seen at 11600 which was last weeks high.

The next major resistance is seen at 16850. A move above 16850 will shift our view to neutral from bearish. Now support for the gold MCX is seen at 16387 and below could see a test of 16154. Resistance is now likely to be seen at 16757, a move above could see prices testing 16894.

Trading Ideas:

Gold trading range is 16400-16850.

Gold ended higher as a combination of oil rally, weak dollar and strong U. S. data boosted investment

Gold is taking support at 16570 and resistance at 16660.

Dubai retail gold volumes drop in January

SELL GOLD APR @ 16600 SL 16656 SL 16572-16531-16470.MCX