Gold suffered additional drop and closed at 21824 that is down by -0.67%, marking the third straight decline, amid widespread selloff.
Besides, the strengthening $ also helped weigh on the commodities. Commodities markets have suffered widespread selloff in the recent trading sessions, as investors began to cash in their positions after rapid hikes in the prices make commodities seem somewhat too high.
Besides, the strengthening US $ also added to the negative tone. The $ continues to show strength off the euro, after recent meeting that "Greece must make the effort, because its medium to long term debt at the moment is unsustainable." Moreover, a trader noted that the precious market also suffered some pressures from news that Soros Fund Mgmt reduced its stake in gold etf.
Now technically market is trading in the range as RSI for 18days is currently indicating 49.38, where as 50DMA is at 21631.12 and gold is trading above the same and getting support at 21699 and below could see a test of 21575 level, And resistance is now likely to be seen at 21964, a move above could see prices testing 22105.
Trading Ideas:
Gold trading range is 21575-22105.
Gold ended lower on weak economic data
Gold looks to take support at 21699 and resistance at 21964.
In spot gold looks to take support at 1478$ and resistance is at 1502$ level.
