Gold on MCX settled up 1% at 28792 surged in yesterday's session in the line of expectation as stocks tumbled for second straight session supported gold prices. It was the biggest monthly gain for gold since June. Gold's safe haven appeal has been in effect as markets have grown anxious about the Trump administration's immigration and trade policies. The U.S. dollar tumbled while stocks cemented their biggest losses in six weeks as Trump added uncertainty to the market following stringent curbs on travel to the United States. The greenback was already weaker after Trump sacked top U.S. government lawyer Sally Yates, who refused to defend his curbs on travel targeting seven Muslim-majority nations. Traders were now looking ahead to the Federal Reserve's two-day meeting on monetary policy starting on Tuesday for further clues on the timing of the next U.S. interest rate hike. Physical gold demand from the world's number-two consumer, India, is likely to remain slack ahead of the annual budget to be held on February 1, 2017, in which some are hoping for a reduction in the current 10% import duty on refined bullion, according to sources. With imports totaling at around 500 mt for the full year 2016, it was a year to forget for India's official physical gold consumption. Traditionally, the country has imported 800-900 mt of gold per year. While Indian gold prices added some gains tracking a firming global trend amid increased buying by jewellers in the ongoing wedding season. Technically market is under fresh buying getting support at 28613 and below same could see a test of 28434 level, And resistance is now likely to be seen at 28908, a move above could see prices testing 29024.

Trading Ideas:

Gold trading range for the day is 28434-29024.

Gold gained buoyed by safe-haven demand after U.S. President Donald Trump rattled global markets with his tough stance on immigration.

The U.S. Federal Reserve is expected to keep interest rates unchanged in its first policy decision since President Donald Trump took office.

Market awaited a decision on interest rates by the U.S. Federal Reserve, which is expected to keep policy on hold.