Gold dropped and closed at 29793 ignoring the jumped in the international market as support seen for gold from the comments of the ECB lifted the euro by more than 1% against the US dollar. Gold futures jumped to the highest levels of the session after ECB President Draghi said earlier that the bank will do whatever is necessary to preserve the euro. In a speech in London, Draghi appeared to indicate that the ECB would be prepared to intervene to lower Spanish and Italian bond yields, saying that government borrowing costs would fall within the central bank's mandate if they interfered with the 'transmission' of monetary policy. On MCX market was under performed as rupee rose by nearly +1.07% to settled at 55.56 posting its biggest gain in two weeks after a sharp recovery in the euro and hopes of more monetary easing by the Federal Reserve spurred dollar selling from companies with long positions. Global risk assets rose sharply after ECB President Mario Draghi pledged to do whatever necessary to preserve the euro, including acting to lower high government borrowing costs. Investors are now eyeing the US GDP figure for the Q2 which is likely to show the world's largest economy grew at its slowest pace in a year. Now technically market is getting support at 29726 and below could see a test of 29658 level, And resistance is now likely to be seen at 29868, a move above could see prices testing 29942.

Trading Ideas:

Gold trading range for the day is 29658-29942.

Gold ended down due to rupee firmness but prices were supported by hopes of more monetary easing after Draghi's comments

Central banks in Russia, Kazakhstan make large gold purchases in June

Investors are now eyeing US GDP figure for Q2 which is likely to show US grew at its slowest pace in year.