Gold rose as weaker-than-expected economic data and continued worries on Greek debt sent participants into the metal as a safe haven, a departure from recent trading as a risk asset. Gold opened at 16478 on MCX, pulling the metal to an intraday low of 14422. Disappointing initial jobless claims in U.S. triggered a selloff in the equity market, in turn pushing energy and base metal prices lower. Surprisingly though, precious metals outperformed the broad market to diverge from the highly correlated risk trade. Gold prices continued to rise throughout the day, reaching an intraday high of 16718 before closing at 16694. Now support for the gold MCX is seen at 16505 and below could see a test of 16315. Resistance is now likely to be seen at 16801, a move above could see prices testing 16907.

Trading Ideas:

Gold trading range is 16315-16907.

Gold rose due to weaker-than-expected economic data and continued worries on Greek debt

Gold is taking support at 16640 and resistance is at 16746 level.

In spot gold is having resistance at 1110$ and support is at 1098$.

BUY GOLD APR @ 16630-16650 SL 16590 TGT 16680-16710-16740.MCX