Gold rose as investors bought the metal for its allure as an alternative currency, despite lower risk tolerance and a higher dollar. Now technically market is trading in the range as RSI for 18days is currently indicating 44.14, where as 50DMA is at 16614 and gold is trading below the same and getting support at 16487 and below could see a test of 16435 level, And resistance is now likely to be seen at 16572, a move above could see prices testing 16605. Spread between Gold APR & JUN contacts yesterday ended at 90, we have seen yesterday that the gold market had traded with a positive node and settled 0.52% up. Spread yesterday traded in the range of 87 - 91.

Trading Ideas:

Gold trading range is 16435-16605.

Gold rose as investors bought the metal as an alternative currency

Support for the gold is at 16486 and resistance is at 16570 level

Today federal fund rate decision is there and expected not to be changed

SELL GOLD APR @ 16615-630 SL 16670 TGT 16570-16522-16460.MCX