Gold yesterday settled down -0.91% at 27092 after falling in the previous session on fears of a slowdown in demand in the world's biggest bullion consumer, India, after its central bank imposed new rules to curb surging imports. RBI took tougher measures to curb gold imports on Tuesday after buying soared in May, extending a ban on deposit-based purchases to cover all imports apart from those used to make jewellery for export. The new rule could slash June imports, industry experts said, even as the government continued to weigh options in case the central bank's measure failed to stem the import flow. The move came after Monday's data showed gold imports in India, which is working hard to reduce its current account deficit, jumped to around 162 tonnes in May from 142.5 tonnes in April despite a rebound in prices. Meanwhile US job growth probably picked up only slightly in May, suggesting the economy is still in a rut and not ready for the Federal Reserve to dial back its monetary support. Also a decline in holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, resumed, falling 0.27 percent to 1010.45 tonnes on Tuesday. Holdings increased last Wednesday and had remained unchanged since. And physical gold buying among private investors slowed in May following weeks of strong bargain hunting. Technically market is under long liquidation as market has witnessed drop in open interest by -3.91% to settled at 13827 while prices down -248 rupee, now Gold is getting support at 26902 and below same could see a test of 26713 level, And resistance is now likely to be seen at 27338, a move above could see prices testing 27585.

Gold trading range for the day is 26713-27585.

Gold fall on fears of a slowdown in demand in India, after its central bank imposed new rules to curb surging imports.

Prices also weighed down by a steady dollar and uncertainty over the timing of a pullback of FED'S stimulus programme also continued to unnerve investors.

India's central bank took tougher measures to curb gold imports on Tuesday after buying soared in May

A decline in holdings of SPDR Gold Trust, resumed, falling 0.27 percent to 1010.45 tonnes on Tuesday.