Gold closed modestly higher along with a rise in equities, but were capped by gains in the U.S. dollar. Gold opened at 16455 and traded in a narrow range as investors moved to the sidelines, slipping to a low of 16359. A notable revision to the housing price index caused the dollar to slump and gold rallied. The metal was swept higher as the London fix began and later peaked at 16504. It traded quietly for the remainder of the session and finally unwound at 16445. Now support for the gold MCX is seen at 16368 and below could see a test of 16291. Resistance is now likely to be seen at 16513, a move above could see prices testing 16581.

Trading Ideas:

Gold trading range is 16291-16581.

Gold rebounded from lows as dollar pares gains

Support for the gold is at 16402 on MCX and in spot support is at 1096$

Spdr gold trust holdings rose by 4.57 tonnes to 1120.08 tonnes.

BUY GOLD APR @ 16380-410 SL 16320 TGT 16435-16470-16522.MCX (HIGH VOLATILITY)