Gold settled sharply higher as participants were increasingly bullish on the metal ahead of the Federal Reserve's interest rate announcement after the market closes. Gold opened at 16554 on MCX. Good buying as base metals, energy and equities climbed higher. Neutral housing data was largely ignored and some short covering eventually took us to a high of 16766. The metals traded in a tight range as the market awaited the statement from the FOMC. We closed the day at 16718. We moved a little higher after the close because Federal Reserve officials retained there pledge to keep rates low for an extended period. Now support for the gold MCX is seen at 16593 and below could see a test of 16467. Resistance is now likely to be seen at 16805, a move above could see prices testing 16891.

Trading Ideas:

Gold trading range is 16467-16891.

Gold settled sharply higher as participants were increasingly bullish on the metal ahead of the Fed meet

Support for the gold is at 16660 and resistance is at 16760 level

The Federal Reserve has kept the interest rate unchanged.

BUY GOLD APR @ 16700-720 SL 16670 TGT 16745-16768-16790.MCX (EVE WEAK)