Gold yesterday once again dropped below 29k level and settled with a fall of -0.41% at 28969 and remained on shaky ground as worries about Greece and the euro zone still dominated market sentiment after a EU summit yielded few practical steps to manage the debt crisis. On domestic gold got support as rupee once again slumped to another record low against the dollar and closed with a fall of -1.03% at 56.06 level ratcheting up pressure on policymakers to restore confidence in the currency at a time when appetite for risky assets is ebbing around the world. Meanwhile, investors eyed a meeting of European leaders amid concerns over a divide between France's new President, who favors measures designed to support growth and pro-austerity Germany. President Hollande was expected to propose the introduction of joint euro bonds at the summit, but Germany has repeatedly resisted the idea, arguing they would lessen pressure for heavily indebted countries to get their finances in order. Although gold’s appeal as a safe haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal in recent months. Now technically market is trading in the range as RSI for 18days is currently indicating 54.53, where as 50DMA is at 28672 and gold is trading above the same and getting support at 28839 and below could see a test of 28708 level, And resistance is now likely to be seen at 29092, a move above could see prices testing 29214.

Trading Ideas:

Gold trading range for the day is 28708-29214.

Gold dropped on shaky ground as worries about Greece and the euro zone still dominated market sentiment.

Indian rupee skids to new low below 56 and eyeing on more falls seen.

SPDR gold trust holdings gained by 2.72 tonnes to settle at 1268.15 tonnes