Gold fell as stronger U.S. housing data and a brighter corporate outlook followed expected European bank stress test results last week to sap the fear factor that recently drove the yellow metal to record highs.
Jewelry makes up more than two-thirds of global gold demand, according to the World Gold Council. Another possible slight positive for gold prices is news of declining production in Russia.
Now technically market is trading in the range as RSI for 18days is currently indicating 39.63, where as 50DMA is at 18562 and gold is trading below the same and getting support at 18080 and below could see a test of 18016 level, And resistance is now likely to be seen at 18241, a move above could see prices testing 18338.
Trading Ideas:
Gold trading range is 18016-18338.
Gold ended weak after data showed that U.S. existing home sales rose
Gold looks to take support at 18080 and resistance at 18200.
Spdr gold trust holdings fell by 0.31 tonnes to 1301.74 tonnes
