Gold drifted lower for a second session Thursday amid slightly improved risk appetite following comments from European Central Bank President Jean-Claude Trichet. Gold bulls sometimes cite the belief that China may seek to diversify some foreign exchange holdings from U.S. dollars into the yellow metal. Now technically market is trading in the range as RSI for 18days is currently indicating 57.31, where as 50DMA is at 17862 and gold is trading above the same and getting support at 18488 and below could see a test of 18377 level, And resistance is now likely to be seen at 18777, a move above could see prices testing 18955.

Trading Ideas:

Gold trading range is 18377-18955.

Gold yesterday ended down as risk appetite improves

Support for the gold is seen at 18530 and resistance is at 18670.

Spdr gold trust holding reached its all time high  at 1306.14 tonnes

SELL GOLD @ 18590-600 SL 18622 TGT 18570-18556-18520.MCX