Gold yesterday settled flat as a weak dollar benefited gold, while the upside was limited as investors ventured into riskier assets after strong industrial data from China improved sentiment. Gold opened the week at 18840. The metal traded lower early in the session as safe haven bidding eased and investors turned towards higher risk assets after better then expected industrial production numbers in China boosted optimism in the global recovery. After trading to a low of 18815, the metal recovered as the dollar came under further pressure, reaching an intraday high of 18904. Range trading led us to a close of 18861. Now support for the gold MCX is seen at 18816 and below could see a test of 18771. Resistance is now likely to be seen at 18905, a move above could see prices testing 18949.

Trading Ideas:

Gold trading range is 18771-18949.

Gold yesterday settled flat as a weak dollar benefited gold, while the upside was limited

On MCX gold looks to take support at 18815 and resistance at 18905 level

Spdr gold trust holdings fell by 0.91 tonnes to 1292.62 tonnes