Gold settled flat as volatility in the euro and weaker equity markets prompted investors to raise cash to cover losses elsewhere. Gold opened the session at 18049, as Germany’s ban on naked short selling of banks and sovereign debt rallied bonds and caused a selloff in equities and commodities. Gold reached a high of 18291 early on strong fund-buying. The downward spiral eventually sent the metal to a low of 17976, with little in the way of physical interest seen. The commodity struggled to gain ground through the afternoon, eventually closing slightly higher at 18018.Now support for the gold MCX is seen at 17899 and below could see a test of 17780. Resistance is now likely to be seen at 18214, a move above could see prices testing 18410.

Trading Ideas:

Gold trading range is 17780-18410.

Gold settled flat as volatility in euro and weaker equity prompted investors to raise cash

Support for the gold is seen at 17960 and resistance is at 18054.

Spdr gold trust holdings rose by 3.04 tonnes to 1220.15 tonnes

BUY GOLD JUNE ABV 18052 SL 18000 TGT 18080-18102-18140.MCX