Gold fell as fears over a worsening European debt crisis and sharp losses in equities and commodities sent the precious metal to its biggest weekly decline this year. The metal came under heavy pressure as disclosures of huge trading losses at JPMorgan Chase & Co, a major bullion trader, dented sentiment among gold investors. Sharp losses in crude oil and copper also offset surprisingly robust U.S. consumer confidence data. Political uncertainty in Greece and a change of leadership in France this week had investors doubting whether Europe would come through with the billions of euros needed to bail out its troubled economies. Spanish bank worries also added to debt fears. There was a lack of aggressive buying of put options to hedge against downside risk despite gold's heavy losses this week. Buying of physical gold has been lackluster in recent weeks in major consumer India, where appetite has been dampened by rupee weakness, further eroding confidence in the metal. Some buying was seen in the United States, where sales of American Eagle gold coins hit 31,500 ounces so far this month, already 50 percent more than was sold in the whole of April. Now technically market is trading in the range as RSI for 18days is currently indicating 39.97, where as 50DMA is at 28619.22 and gold is trading below the same and getting support at 28335 and below could see a test of 28305 level, And resistance is now likely to be seen at 28392, a move above could see prices testing 28419.

Trading Ideas:

Gold trading range for the day is 28305-28419.

Gold fell as fears over a worsening European debt crisis and sharp losses in equities and commodities weighed on precious metal.

Worries over Greek bailout funds, Spain debt weigh

Interest down across asset classes; US put buying unseen