Gold ended higher in spite of a strong dollar, as sovereign debt worries surrounding Greece and uncertainties about currencies prompted safe-haven buying. Gold opened at 16697 on MCX. US economic data released had a relatively benign impact on the metal as it traded sideways in a narrow range. Gold later retreated as the London fix got started and was offered for the remainder session, reaching a low of 16638. Equity markets took back lost ground and helped the metal rally off its lows. It climbed to an intraday high of 16780 and later unwound just below its highs at 16768. Now support for the gold MCX is seen at 16677 and below could see a test of 16587. Resistance is now likely to be seen at 16819, a move above could see prices testing 16871.

Trading Ideas:

Gold trading range is 16587-16871.

Gold ended up on credit woes despite dollar rise

Support for the gold is at 16720 and resistance is at 16810 level

Gold in spot taking support 1118$ and resistance is at 1132$.

SELL GOLD APR 16780-16800 SL 16842 TGT 16756-16710-16670.MCX