Gold prices fell due to a dearth of buying support at record high levels. The shifting of investor funds from bullion markets to surging domestic equities for quick gains also reduced demand for the metal. Despite making strong gains in the last month, we expect yellow metal prices to further rally considering the state of the U.S. economy. Investor demand for gold, especially purchased through exchange-traded funds backed by physical metal, has grown to account for more than a third of the total market. Now support for the gold MCX is seen at 19179 and below could see a test of 19144. Resistance is now likely to be seen at 19254, a move above could see prices testing 19294.

Trading Ideas:

Gold trading range is 19144-19294.

Gold prices fell due to a dearth of buying support at record high levels

Gold looks to take support at 19179 and resistance at 19254.

Spdr gold trust holdings fell by 2.44 tonnes to 1302.34 tonnes