Gold yesterday jumped by +0.38% to settled at 27588 advanced  for the second day hitting the highest level since mid December on a weakening U.S. dollar and worries about a possible Greek default. India hiked its gold import duty by 90 percent as the world's biggest consumer of bullion seeks to increase revenues, sending futures prices higher and hitting shares of jewellers. India changed the import duty on gold to 2 percent of value from the earlier flat 300 rupees per 10 grams the government said in a statement. Weakness in the US dollar worked to lift precious metal prices. The concern of a default by Greece continued, as talks aimed at negotiating the restructuring of the country’s debts remained deadlocked, amid disagreements over a bond swap with private creditors. Without the swap, debt-stricken Greece is unlikely to secure a second financial bailout, raising fears over a possible disorderly Greek default in March, when massive bond payments are due. Gold prices lifted upon government data showing China’s economy expanded at an annualized rate of 8.9% in the fourth quarter, slowing from the previous quarter’s 9.1% rate, but slightly better than expectations for an 8.8% increase. Now technically market is trading in the range as RSI for 18days is currently indicating 44.45, where as 50DMA is at 28152 and gold is trading below the same and getting support at 27463 and below could see a test of 27337 level, And resistance is now likely to be seen at 27746, a move above could see prices testing 27903.

Trading Ideas:

Gold trading range is 27337-27903.

Gold futures advanced on a weakening U.S. dollar and worries about a possible Greek default. 

India changed the import duty on gold to 2 percent of value from the earlier flat 300 rupees per 10 grams

Gold prices jumped on China’s economy expanded at an annualized rate of 8.9% in the fourth quarter.