Gold traded in jerky session on Tuesday as traders backed away from the safe investment amid anticipation that the financial system can return to normal.

In the international spot market, Gold belled the day at $887.50. During the session, it gained steam as worse than expected retail sales caused the equity markets to fall and gold rapidly rallied, touching an intraday high of $893.

Gold typically moves opposite the US currency owing to its hedge value. The dollar remained choppy as compared to other majors on Tuesday, giving back early gains.

The US Labor Department said manufacturer costs declined 1.2% during the last month, following a revised increase of 0.1% in March 2009.

Economists had anticipated no change in producer prices during the period.

Today, MCX Gold June contract stood at Rs 14,353 per 10 gram. It opened strongly at Rs 14,636 as compared to its last closure at Rs 14,328.

Now support for the Gold MCX is seen at Rs 14,214 and below could see a test of Rs 14,167. Resistance is now expected to be witnessed at Rs 14,354, a move above could see prices testing Rs 14,447.
 
Gold is likely to trade between Rs 13,980 to14,640. There is a chance to book profit in MCX June contract by purchasing it at Rs 14,250-280 with a stop loss of Rs 14,180, and target of Rs 14,290-14,345-14,390-14,450 and selling it at Rs 14,480-520 targeting the levels of Rs 14,422-14,370-14,345-14,298-14,262.