Gold edged up after a sharp correction in the previous session, buoyed by a stronger euro and physical buying from China, with expectations of aggressive monetary easing in Japan also lending support. The euro rose as much as half a percent in its third day of gains, after the ECB kept interest rates unchanged and its chief struck a more optimistic tone on the region's economic recovery late last week. Speculators cut their net long positions in gold to a four-month low in the week to Jan. 8, data from the US CFTC showed. Support seen in the gold prices rose after investors snapped up long positions in the precious metal on market talk that the Fed will make no changes to its stimulus polices in the near future. Bernanke is due to speak in public later and hopefully clear up doubts surrounding when the US central bank will consider winding down a $85 billion monthly bond buying program, which weakens the dollar as a side effect. Minutes from the Fed's Dec meeting and comments made by senior monetary authorities seem to suggest Fed governors are spending more time discussing when to consider winding down stimulus measures. Also pressure seen as rupee rose after India delayed the implementation of controversial rules on tax avoidance to 2016, a decision expected to support capital inflows from foreign investors. Now technically market is getting support at 30691 and below could see a test of 30641 level, And resistance is now likely to be seen at 30815, a move above could see prices testing 30889.

Trading Ideas:

Gold trading range for the day is 30641-30889.

Gold edged up buoyed by stronger euro and physical buying from China, with expectations of aggressive monetary easing in Japan also lending support.

Ben Bernanke urged U.S. lawmakers to lift the country's borrowing limit to avoid a potentially disastrous debt default

Investors remained wary after it recorded its biggest quarterly drop in more than four years in last three months of 2012.