Gold prices dropped marginally by Rs.44.00 to settled at 30863 on growing sentiment that while the US economy may be sluggish, it's strong enough to stand on its own two feet and without the help of Federal Reserve monetary easing measures. Uncertainty as to when the Federal Reserve may consider winding down its USD85 million monthly bond-buying program has sent gold prices swinging up and down in recent sessions though on Monday, investors sold the precious metal on sentiment that an end could come this year. The minutes of the Federal Reserve's monetary policy meeting released recently revealed that most board members are debating when to wind down stimulus measures, which weaken the dollar as a side effect, as opposed to debating whether or not to add to the size of the program. Gold and the dollar trade inversely from one another and talk of winding down monetary stimulus measures can send the metal sliding. Meanwhile, concerns that members of the US Congress may engage in brinkmanship amid debates to lift the government's debt ceiling likely in February fueled ongoing safe-haven demand for the greenback, which allowed gold to fall. In the US on Friday, the Bureau of Labor Statistics reported the US economy added 155k nonfarm payrolls in December, beating market calls for the economy to create 150k new jobs. Now technically market is getting support at 30779 and below could see a test of 30696 level, And resistance is now likely to be seen at 31002, a move above could see prices testing 31142.

Trading Ideas:

Gold trading range for the day is 30696-31142.

Gold prices slipped as stock markets retreated before this week's start of earnings season

Fed officials are increasingly concerned about the potential risks of the U.S. central bank's asset purchases on financial markets.

SPDR gold trust holdings dropped by 1.35 tonnes to 1340.74 tonnes