Gold ended down nearly Rs.163.00 to settled at 29265 on signs that US economic recovery might need to weaken further for Fed policymakers to unanimously agree on more stimulus. Bullion trimmed gains as the dollar rose after the minutes of the Fed's June meeting showed that a few officials on the policy setting FOMC thought recent softness in the economy was sufficient to justify bolder action. The metal had dropped 3 percent in the last four sessions on signs of global economic slowdown and frustrations over a lack of more monetary easing by the US central bank. The report suggested a majority of the FOMC voting members was not yet on board to call for more easing at least not before last week's employment report, which showed a paltry 80k0 new jobs were created in June. By Tuesday's close, holdings of gold in the world's largest exchange traded products fell to the lowest level since mid-June, down nearly a quarter of a million ounces in two trading days, the largest two-day drop since May. The bulk of the outflows are coming from the SPDR Gold Trust which has shed 333,500 ounces in the last three weeks. Now technically market is trading in the range as RSI for 18days is currently indicating 43.88, where as 50DMA is at 29641 and gold is trading below the same and getting support at 29193 and below could see a test of 29122 level, And resistance is now likely to be seen at 29368, a move above could see prices testing 29472.

Trading Ideas:

Gold trading range for the day is 29122-29472.

Gold prices traded lower as pressure seen ahead of Fed meet

Fed released the minutes of its meeting that showed no new inclination to stimulate the US economy pressuring more

Monetary stimulus tools, including QE, weaken the dollar in an effort to spur recovery.