Gold prices ended with 0.23% gains on MCX due to rupee weakness after prices get pressure as worries about continued contraction in manufacturing in both the euro zone and China triggered a broad sell-off. The metal, which has taken to follow riskier assets, was pressured as data showed manufacturing activity in both China and Europe have shrunk further. That more than offset a four-year low in U.S. initial jobless claims. Worries about faltering global growth hit equities and commodities after weak data on manufacturing activity in China and the euro zone. Weighing on market sentiment, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.59 percent, or 7.553 tonnes, to 1,282.69 tonnes on Thursday. It was the biggest one-day drop in tonnage terms in three months. Physical buying was particularly quiet in Asia as disappointing China's manufacturing data fanned concerns about China's retail gold appetite. In India, the world's largest gold consumer, jewelers have been closed since the weekend in protest against an import duty increase on bullion. Now technically market is trading in the range as RSI for 18days is currently indicating 48.27, where as 50DMA is at 28141.58 and gold is trading below the same and getting support at 27823 and below could see a test of 27733 level, And resistance is now likely to be seen at 27970, a move above could see prices testing 28027.

Trading Ideas:

Gold trading range for the day is 27733-28027.

Gold prices ended gains due to rupee weakness after prices was pressured as manufacturing activity in China and Europe have shrunk

Physical buying was particularly quiet as disappointing China's manufacturing data fanned concerns about China's retail gold appetite

SPDR gold trust holding dropped by 7.56 tonnes to 1282.69 tonnes.