Gold finished steady capping a choppy session in which the tight relationship between gold prices and the U.S. dollar showed signs of fraying. Gold is largely unchanged from previous close at current 1124. For the past three days the metal has found support in the 1110 to 1112 area but strong resistance is still seen near 1138. Price action is consolidation in nature following last week’s aggressive correction from 1226.50 to 1110. Our major bull channel support is now seen at 1089.Now support for the gold MCX is seen at 16915 and below could see a test of 16788. Resistance is now likely to be seen at 17138, a move above could see prices testing 17234.

Trading Ideas:

GOLD TRADING RANGE IS 16800-17250.

GOLD FINISHED STEADY SHOWING SIGNS OF FRAYING BETWEEN GOLD PRICES AND DOLLAR

SELL GOLD FEB ON JUMP @ 17120-17140 SL 17175 TGT 17092-17056-17032-17000.MCX

OVERALL LOOKING WEAK BELOW 17000 LOOKS TO TAKE SUPPORT AT 16840.

GOLD SPDR TRUST HOLDINGS SETTLED STEADY AT 1116.55 TONNES.