According to Ajay Kedia, managing director of Kedia Commodities, Gold opened at USD 763.50/765.50 and dipped briefly, but stronger equity markets and climbing oil prices carried the metal higher, finding resistance near USD 778. He further added that the gold ticked lower through the London fix, but this move was short lived as fund buying pushed it higher, triggering stops, peaking at USD 787/789. The metal retreated quickly from the highs and was dragged lower as oil tumbled and equity markets slumped, finally settling at USD 764.50/766.50. At the MCX, Gold December, 2008 contract opened at Rs 12,352, per 10 gm as compared to its earlier closing of Rs 12,365 tossed in the range of Rs 12,305-12,360 and was last traded at Rs 12,338 down 0.22%. The support for the gold MCX is seen at Rs 12,282 and below could see a test of Rs 12,198. Resistance is now likely to be seen at Rs 12,512, a move above could see prices testing Rs 12,658. In his opinion, Gold futures are expected to trade within the range of Rs 12,100-12,650 and recommended taking short position in MCX gold futures below Rs 12,360 with a stop loss of Rs 12,422 and target of Rs 12,338-12,310-12,275 per 10 gm.

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