Gold gained by +0.42% to settled at 30869 as sentiment on precious metal was underpinned after Bernanke indicated that the central bank intended to continue its quantitative easing program. In a speech on the economy and monetary policy, Bernanke said that he was still unsatisfied with the economy's progress, despite some recent signs of improvement. Bernanke made no mention of winding the program down, clearing some confusion caused by the most recent Fed meeting minutes. Gold futures tumbled last week after the minutes from the central bank's December meeting indicated that it could end its QE program earlier than expected. The Fed's bond buying program is viewed by many investors as a major source of liquidity that weakens the US dollar and helps support prices of commodities and other hard assets, including gold. Focus was expected to remain on the US economy, as investors remained jittery with negotiations on raising the US debt ceiling still to come in February. Meanwhile Obama warned Congress that it must raise the debt ceiling or risk a "self-inflicted wound on the economy." Also Bernanke and Treasury Secretary also urged policymakers to act swiftly in order to prevent a potential debt default. Expectations for more aggressive easing measures by the Bank of Japan also contributed to gains after Japanese PM called for the central bank to adopt a 2% targeted inflation rate over the weekend. Now technically market is getting support at 30775 and below could see a test of 30681 level, And resistance is now likely to be seen at 30925, a move above could see prices testing 30981.

Trading Ideas:

Gold trading range for the day is 30681-30981.

Gold rose taking a cue from Fed Reserve comments that suggested central bank was in no hurry to withdraw monetary stimulus.

Gold importers in India kept to the sidelines after the harvest festival as prices edged higher in line with global markets and weaker rupee.

SPDR gold trust holdings dropped by 0.90 tonnes to 1336.83 tonnes