Gold prices faced resistance at psychological level of $900/Oz. Gold prices fell relinquishing early gains as global share prices arrested theirdecline and overshadowed credit jitters that had previously heightened bullion's appeal.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings remained unchanged at 1,105.98 tonnes as of April 21 after investor outflows early this week reached their biggest since early September.

Holdings hit a record 1,127.68 tonnes on April 9. Recovery in physical buying by India, the world's largest importer, with MMTC Ltd saying it would import
9-10 tonnes this month, boosting the country's total March purchases after several months of next-to-nil imports. Due to Akshaya Tritya some improvement in retail demand was witnessed.

A surge in financial shares lifted Wall Street on Tuesday after the U. S. Treasury Secretary said American banks have enough capital led to correction in Gold prices, while the euro gained against the dollar on a jump in German investor confidence.

We expect Gold prices to trade in the range between $878-892.50. We might see some downside pressure if stability is restored after Monday’s sell off. The bias is slightly negative for the day.

Gold: Gold prices managed to break the resistance line at 14465 and edged up. However, gold prices found resistance at the 14550 levels, near its 35 days EMA. Thus gold prices can remain range bound today between 14550 and 14240 levels. Gold may tend to move down if breaks 14240 support levels. Therefore selling can be done below 14240, with SL of 14360, for target of 14100.