Gold ended slightly lower on Monday, but up from lows posted earlier in the session, as investors covered short positions after Friday's sell-off. Cautious tone in gold market after the SEC charged Goldman Sachs Group Inc with fraud in structuring and marketing a debt product tied to subprime mortgages. Gold opened traded under pressure and touches its intraday low of 16471 which was up slightly after trading through the 1125 level overnight. The metal range traded early in the session rising to an intraday high of 16635 as the Dollar weakened. Gold traded sideways for the remaining session to its close of 16613.now technically market is trading in the range as RSI for 18days is currently indicating 47.07, where as 50DMA is at 16690.22 and gold is trading below the same and getting support at 16509 and below could see a test of 16406 level, And resistance is now likely to be seen at 16678, a move above could see prices testing 16744.

Trading Ideas:

Gold trading range is 16406-16744.

Gold ended slightly lower as investors covered short positions after Friday's sell-off

Support for the gold is at 16570 and resistance is at 16660.

In spot gold looks to have resistance at 1142$ and support at 1126$.

BUY GOLD JUNE @ 16560-580 SL 16520 TGT 16612-16645-16680.MCX