Gold closed sharply weaker in response to the euro collapsing to its lowest level against the U.S. dollar since last May as a debt downgrade for Portugal came on top of ongoing worries about where Greece can turn for a rescue package. Gold opened at 16451 and made a high of 16461.The metal traded on the heavy side as the dollar went on the offensive. It retreated to an intraday low of 16275 before good buying kept the metal buoyant. It pushed marginally higher and traded quietly within a narrow range, finally settling at 16295. Now support for the gold MCX is seen at 16226 and below could see a test of 16158. Resistance is now likely to be seen at 16412, a move above could see prices testing 16530.

Trading Ideas:

Gold trading range is 16158-16530.

Gold closed sharply weaker in response to the euro collapsing against the U.S. dollar

Support for the gold is at 16240 on MCX and resistance is at 16340.

In spot gold is having support at 1078$ and resistance at 1092$.

BUY GOLD APR ABV 16310 SL 16280 TGT 16335-16356-16370. MCX (EVE WEAK AGAIN)