DAILY GOLD TREND FOR 21 DEC 2010

 Comex gold futures prices ended modestly higher Monday
on some fresh safe-haven investor buying demand. Concern
regarding North Korea and  South Korea saber-rattling and
 about the European Union's debt crisis are supporting some
 fresh buying interest in the precious metals markets. February
 Comex gold last traded up $7.00 at $1,386.20 an ounce.
 Spot gold last traded up $10.20 at $1,386.25.

The U.S. dollar index traded firmer Monday, also seeing some
safe-haven buying interest from the EU and Koreas' developments.
The dollar index bulls have regained some upside technical momentum.
 U.S. Treasury yields are at or near six-month highs, which is
 supporting the greenback and pulling some investment
demand away from the precious metals.

Moody's spread even more Christmas cheer on Monday by
downgrading five Irish banks -- Allied Irish Banks, Bank of
 Ireland, EBS Building Society, Irish Life & Permanent
and Irish Nationwide Building Society -- because of their
 reliance on government funding.

"Further pockets of profit-taking ... are likely in the run-up to
 year-end but as has been seen this morning the mix of
economic and geo-political woes will continue to underpin
the complex," says James Moore, research analyst at
fastmarkets.com.

Barclays Capital said the liquidation wasn’t surprising as
profit-taking emerges during the year-end. During the timeframe,
 holdings in exchanged-traded funds were generally flat,
rather than seeing hefty outflows like the futures and
options markets did. The CFTC data shows net fund length in
Comex gold is at a one-month low, the bank said. Similar
activity was seen for silver and platinum markets, Barclays said

Because Christmas Holiday's volume is half of the normal trading days



MY COUNTS FOR 21 DEC FPR FEB GOLD

RESISTANCE # 2...................$1397.00(MCX Rs 20705)
RESISTANCE # 1...................$1392.00(MCX Rs 20657)
PIVOT.....................................$1383.00(MCX Rs 20596)
SUPPORT # 1.........................$1378.00(MCX Rs 20552)
SUPPORT # 2.........................$1369.00(MCX Rs 20490)

RECOMMENDATION : TRADE BETWEEN SUPPORT AND RESISTENCE LEVEL

RAHUL KUMAR
GOLD Analysist

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