Gold dropped and settled down by -0.15% at 29222 as pressure seen after data indicated an improving US employment picture lessening the chances for monetary easing measures. The precious metal came under further pressure as investors piled in to the relative safety of the US dollar amid mounting concerns over the global economic outlook. The surprisingly strong employment data added to fading hopes over further easing from the Federal Reserve after minutes of the central bank's June policy-setting meeting revealed that only a few board members thought that more asset purchases would be necessary. In domestic market some support seen from the rupee weakness which dropped nearly -0.75% after data showed May industrial output rose 2.4% in May, much higher than the 1.8 percent growth expected. The good news was offset after the April numbers were revised downwards. Instead, hopes for policy reforms are expected to support the rupee. Government officials have strongly hinted at a potential hike in diesel prices, which would help alleviate concerns over India's fiscal outlook. Now technically market is getting support at 29147 and below could see a test of 29071 level, And resistance is now likely to be seen at 29312, a move above could see prices testing 29401.

Trading Ideas:

Gold trading range for the day is 29071-29401.

Gold dropped after data indicated an improving US employment picture lessening the chances for QE.

Dampened hopes for a fresh US stimulus from the Fed, however, pushed gold down.

SPDR gold trust holdings dropped by 1.51 tonnes to 1269.73 tonnes.