Gold futures pared gains on Monday and managed to sustained above 23200 level and settled at 23230 that is up by +0.56, but remained well supported close to the record high amid mounting fears over a possible U.S. sovereign debt default after talks to raise the country’s debt ceiling broke down over the weekend. With time running out, talks between Democrats and Republicans broke down over the weekend, prompting White House Chief of Staff Bill Daley to warn that there would be a "few stressful days" ahead for financial markets, as the deadline to raise the USD14.3 trillion debt ceiling was only nine days away. Any budget plan to raise the debt limit must pass both the Republican and Democratic-run Senate and be signed by Obama. Rating agency S&P's last week reiterated that there was a 50-50 chance the U.S. AAA credit rating could be cut if a deal isn’t accompanied by a “credible solution” on the debt burden. Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk. Now technically market is trading in the range as RSI for 18days is currently indicating 63.06, where as 50DMA is at 22541.8 and gold is trading above the same and getting support at 23121 and below could see a test of 23013 level, And resistance is now likely to be seen at 23348, a move above could see prices testing 23467.

Trading Ideas:

Gold trading range is 23013-23467.

Gold rose to record highs as a stalemate in budget talks in Washington prompted investors to buy the metal

Rating agency S&P's reiterated that there was 50-50 chance US AAA credit rating could be cut.

Moody's said it was almost certain to slap a default tag on Greek debt