Gold ended sharply lower as China's pledge to increase flexibility and gradual appreciation of its currency encouraged risk appetite, prompting traders to book profits. Gold is profiting from its status as a safe haven and is likely to remain in strong demand as long as doubts persist about the chances of successfully resolving the debt crisis in Europe. Now technically market is trading in the range as RSI for 18days is currently indicating 54.43, where as 50DMA is at 18172 and gold is trading above the same and getting support at 18418 and below could see a test of 18289 level, And resistance is now likely to be seen at 18761, a move above could see prices testing 18975.

Trading Ideas:

Gold trading range is 18289-18975.

Gold ended sharply lower on improved risk appetite

Support for the gold is seen at 18480 and resistance is at 18600.

In spot gold looks to have support at 1222$ and resistance at 1248$

BUY GOLD AUG ABV 18570 SL 18540 TGT 18600-18635-18670.MCX