Gold faltered as participants sold previously bought positions. The liquidation was coming as the dollar gained ground and there were concerns about further dollar gains. The European debt saga continues to leave participants biting their nails and moving into the perceived safety of the U.S. dollar. Gold opened at 16861 on MCX. After moving higher overnight, gold drifted lower in the morning as investors quickly realized their profits. Prices consolidated briefly around the 16850 range, before dipping further to an intraday low of 16652 in sympathy with a slightly stronger dollar and declining equities. Trading continued within a tight range, and the metal finally settled the day at 16692. Now support for the gold MCX is seen at 16600 and below could see a test of 16507. Resistance is now likely to be seen at 16837, a move above could see prices testing 16981.

Trading Ideas:

Gold trading range is 16507-16981.

Gold faltered as participants sold previously bought positions after dollar gained ground

Gold is taking support at 16640 and getting resistance at 16730.

In spot gold is taking resistance at 1122$ and support at 1108$.

SELL GOLD APR @ 16730-750 SL 16795 TGT 16702-16670-16635.MCX