Gold once again traded in the range and closed with a fall of Rs. 89.00 to settled at 28880 as pressure seen from rupee firmness which gained by 0.62% whereas on the contra gold in international jumped nearly 2% prior to falling back, as the release of disappointing US data triggered hopes for a 3rd round of monetary easing by the Fed. Gold futures spiked to the highest levels of the session after the Commerce Dept said US core durable goods orders fell by a seasonally adjusted 0.6% in April, defying expectations for a 0.9% gain. Gold investors will be closely watching US data in the Q2 for clues as to the likelihood of a fresh round of QE, which could potentially hurt the dollar and support gold. The minutes of the central bank's April 24-25 meeting released last week stated that "several members" thought additional Fed support could be needed if the recovery lost momentum or if the risks to the economy became great enough. Expectations of QE tend to benefit gold, however investors remained cautious after summit of EU leaders shed no new light on how the euro zone nations intend to tackle their debt crisis, including the threat of Greece's possible exit from the monetary union. Now technically market is trading in the range as RSI for 18days is currently indicating 52.7, where as 50DMA is at 28673 and gold is trading above the same and getting support at 28789 and below could see a test of 28697 level, And resistance is now likely to be seen at 29037, a move above could see prices testing
29193.

Trading Ideas:

Gold trading range for the day is 28697-29193.

Gold dropped tracking euro as it fell on mounting doubt about whether Greece will keep the single currency.

The prices got an early price lift after IMP data showed another rise in central bank gold holdings in April

SPDR gold trust holdings gained by 2.11 tonnes to settle at 1270.26 tonnes