Gold once again traded negative and tested near a four-month low, after falling by more than two percent, as economic data from the US and Europe pointed to steady growth, which depresses safe-haven demand from investors. US housing and factory data on Thursday showed the economy still gaining strength in December but at a pace unlikely to cause the Federal Reserve to rethink its stimulus program. Holdings in the SPDR Gold Trust, fell about three tonnes to its eight-month low of 1,226.546 tonnes now technically market is in oversold as RSI for 18days is currently indicating 26.1, where as 50DMA is at 20462 and gold is trading below the same and getting support at 19536 and below could see a test of 19394 level and resistance is now likely to be seen at 19935, a move above could see prices testing 20192.

Trading Ideas:

Gold trading range is 19394-20192.

Gold fell on waning investor appetite and some anticipation of interest rate hikes

Support for the gold is seen at 19620 and resistance at 19740 level.

Spdr gold trust holdings fell by 3.04 tonnes to 1226.55 tonnes.

SELL GOLD FEB @ 19725-740 SL 19798 TGT 19680-19645-19580.MCX