Gold prices rose and settled at 30772 after the Bank of Japan announced plans to ramp up its monetary stimulus programs next year. The Bank of Japan earlier said it would roll out an open-ended asset purchasing program to stimulate the economy in 2014 and double its inflation target to 2%, which allowed gold to post gains, as stimulus measures should weaken the safe-haven yen. Gains were muted somewhat as investors were hoping for the Bank of Japan to begin stimulating the economy sooner. The Bank of Japan previously pledged to inject JPY101 trillion into markets with its asset-buying and lending program. Meanwhile in the US, existing home sales fell unexpectedly in December, industry data showed on Tuesday, which capped the gold's gains. Gold prices in India rose as the market factored in the finance ministry's decision to raise the import tax on gold to 6 percent from 4 percent, which will raise the cost of bringing metal into the country. But market were still unsure on how the tax hike would impact future demand. News of the hike in imports duty in India will influence the gold market in coming days but it's not very clear if this will result in a sharp fall in demand again. The upcoming Lunar New Year festivities in Asia, particularly China, which is vying with India to become the world's top gold consumer, have lifted physical gold demand since the start of the year. Now technically market is getting support at 30719 and below could see a test of 30665 level, And resistance is now likely to be seen at 30822, a move above could see prices testing 30871.

Trading Ideas:

Gold trading range for the day is 30665-30871.

Gold inched up as an inflation hedge was bolstered when the BoJ announced aggressive monetary stimulus.

BOJ said it would switch to an open-ended commitment to buying assets next year and double its inflation target to 2%.

SPDR gold trust holdings gained by 3.31 tonnes to 1335.92 tonnes.