Gold closed lower, unable to fully recover with the euro and with interest-rate concerns still overhanging the market. Some market participants were described as hesitant to buy around current levels, waiting for a further pullback as a bargain-hunting opportunity. Now technically market is trading in the range as RSI for 18days is currently indicating 42.74, where as 50DMA is at 16592 and gold is trading below the same and getting support at 16336 and below could see a test of 16255 level, And resistance is now likely to be seen at 16506, a move above could see prices testing 16595. Spread between Gold APR & JUN contacts yesterday ended at 92, we have seen yesterday that the gold market had traded with a negative node and settled -0.55% down. Spread yesterday traded in the range of 53 - 97.

Trading Ideas:

Gold trading range is 16255-16595.

Gold ended down as worries about monetary tightening prompted selling

Support for the gold is at 16360 and resistance is at 16456 level

In spot gold is having resistance @ 1108$ and support is at 1092$

SELL GOLD APR 16480-500 SL 16565 TGT 16435-16402-16356. MCX