Gold recovered all of its losses and ended positive as traders squares all their position ahead of FOMC meet after prices fell earlier as data showing U.S. producer prices and retail sales rose slightly more than expected in November lifted the dollar into positive territory. Gold is benefiting on the one hand from inflation-led buying in Asia, and from safe-haven-led buying particularly in North America where there is a lack of confidence in issues like the budget deficit being solved. Gold opened at 20635 and quickly reached an intraday high of 20729. Profit taking after better than expected economic data took the metal to an intraday low of 20570. Renewed buying interest ahead of the Fed’s rate decision took the metal to its close of 20672.Now support for the gold MCX is seen at 20585 and below could see a test of 20498. Resistance is now likely to be seen at 20744, a move above could see prices testing 20816.

Trading Ideas:

Gold trading range is 20498-20816.

Gold ended positive as traders squares all their position ahead of FOMC meet

Gold looks to take support at 20525 and resistance at 20650.

Federal reserve maintains benchmark rate at 0.25% and $600 billion purchase target unchanged.