Gold fell nearly 2 percent to two-month lows on Thursday due to technical selling and as worries over further monetary tightening in China triggered a commodities rout. Gold, which rose 30 percent last year, has fallen 5 percent this month as investors took profits and put more cash into assets such as equities and industrial commodities.

Gold opened lower at 20395 quickly rising to its intraday high of 20402 soon after. A rising dollar coupled with declines in equities saw the metal lower, eventually reaching an intraday low of 20126 mid morning. Quiet range trading for the remainder of the session took gold to its close at 20176. Now technically market is trading in the range as RSI for 18days is currently indicating 38.54, where as 50DMA is at 20537.86 and gold is trading below the same and getting support at 20067 and below could see a test of 19959 level, And resistance is now likely to be seen at 20343, a move above could see prices testing 20511.

Trading Ideas:

Gold trading range is 19959-20511.

Gold came under further pressure after dollar rose as better-than-expected housing and employment data.

Spot gold fell as low as $1,342.65 an ounce, its weakest since November 19.

Chinese tightening could derail global economic recovery sparked losses in stock markets too.

SELL GOLD FEB @ 20230-250 SL 20278 TGT 20198-20156-20080.MCX