Gold were spotted fractionally higher rose by +0.41% to settled at 30823 rose but the gains were small for a market seen as a key hedge to the US fiscal crisis. Bullion prices have crept up since December 21, though they have gained no more than 1 percent in all as America heads for another possible recession from punitive tax hikes and spending cuts scheduled to start as early as next week. Traditionally a safe-haven and inflation hedge that investors rush to in times of trouble, gold has lately behaved like any risk asset -- often rising and falling with the stock market and sometimes even following the dollar. Later in the day, various media outlets reported that Congress will reconvene on Sunday December 30 in what appears to be a last ditch effort to avoid the fiscal cliff. Those headlines helped pare losses for US equities, but gold did not move much on that news as traders appear resigned to the notion that gold remain locked in a tight trading range until there is some resolution to the fiscal cliff. US politicians are clearly cutting things close by waiting until Sunday to get down to business. The deadline to avert the cliff is January 1, 2013 and if a compromise is not reached over the weekend, nearly $110 billion in spending cuts could take effect in January alone. Now technically market is getting support at 30678 and below could see a test of 30532 level, And resistance is now likely to be seen at 30909, a move above could see prices testing 30994.

Trading Ideas:

Gold trading range for the day is 30532-30994.

Gold gained after official data revealed fewer Americans sought initial jobless benefits than expected last week.

Gold investors kept a close eye on talks to avert a fiscal crisis in the United States.

Gold demand remained strong as jewellers were restocking for a festival, although retail demand was weak.