Gold rallied to eight week highs to test 28577 in the morning session as the US dollar weakened on strong euro zone economic data and hopes for a Greek debt settlement but finally settled at 28419 as pressure on MCX seen after rupee firmness. Driving the dollar lower thus gold higher, the ISM’s mfg index climbed to 54.1 in January from 53.1 in December. 50 is the dividing line between economic growth and contraction. Manufacturing also increased in China with the official PMI growing to 50.5 in January from 50.3 in December, beating the consensus forecast for a sub 50 reading. News from the Greek debt talks indicates that progress is being made in terms of a sweetener tied to a revival in economic growth that would soften the blow of lower bond interest rates. Investors are awaiting additional details. Earlier, Greek newspaper Kathimerini reported that the head of the IMF`s mission to Athens said talks on a new loan program for the island country will wrap up in several days. Now technically market is trading in the range as RSI for 18days is currently indicating 54.66, where as 50DMA is at 28172 and gold is trading above the same and getting support at 28342 and below could see a test of 28264 level, And resistance is now likely to be seen at 28537, a move above could see prices testing 28654.

Trading Ideas:

Gold trading range is 28264-28654.

Gold rallied to eight week highs international but rupee firmness checking the prices on MCX.

Driving the dollar lower thus gold higher, the ISM’s mfg index climbed to 54.1 in January from 53.1 in December

Greek newspaper Kathimerini reported that the head of the IMF`s mission to Athens said talks on a new loan program