Gold consolidated yesterday and look to get support after volatile trade in the previous session, but gains could be capped by a firm euro following better-than-forecast debt auctions by Spain and Italy, which eased fears about the debt crisis in Europe. Gold opened slightly lower at 20415 and traded in the range and test the intraday high of 20514 after poor jobs data. Profit taking as the dollar softened coupled with declines in equities saw the metal reach an intraday low of 20375 and setteled at 20438. Now technically market is trading in the range as RSI for 18days is currently indicating 49, where as 50DMA is at
20530.78 and gold is trading below the same and getting support at 20371 and below could see a test of 20303 level, And resistance is now likely to be seen at 20510, a move above could see prices testing
20581.

Trading Ideas:

Gold trading range is 20303-20581.

Gold ended steady as worry over jobless data eases

Gold may rise on speculation that demand from China, the world’s second-largest consumer after India.

SPDR Gold Trust holdings fell to 1,265.093 tns by Jan 13 from 1,271.467 tonnes on Jan 11.

BUY GOLD FEB @ 20370-380 SL 20350 TGT 20422-20456-20490.MCX