Gold settled down -1.07% at 29303 as safe-haven appeal dimmed as President Barack Obama launched a series of White House meetings with lawmakers on Wednesday to search for a way to end a government shutdown and raise the debt limit. On COMEX Gold fell below $1300 as the dollar rose while investors digested news that Federal Reserve Vice Chair Janet Yellen will be nominated as the next chief of the U. S. central bank. Bullion stayed lower after news the Fed's shock decision last month not to reduce its support for the U. S. economy was a "relatively close call" for policymakers, according to minutes of the meeting that also suggested there was still broad support to trim bond-buying this year. Clearly, gold has not gotten much of a lift on news that President Obama has nominated Federal Reserve Vice Chairwoman Janet Yellen to replace Ben Bernanke atop the Fed when Bernanke retires early next year. While the rumor, was confirmed Wednesday in the U. S., gold traders seem unimpressed or more focused on the fact that the U. S. government shutdown is approaching its tenth day. In U. S. economic news out Wednesday, the Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity rose 1.3% for the week ending October 4. While the world's largest gold-backed ETF, the SPDR Gold Trust, reported its holdings fell 1.8 tonnes on Tuesday. Technically market is under fresh selling as market has witnessed gain in open interest by 0.32% to settled at 7293 while prices down -316 rupee, now Gold is getting support at 28993 and below same could see a test of 28683 level, And resistance is now likely to be seen at 29631, a move above could see prices testing 29959.

Trading Ideas:

Gold trading range for the day is 28683-29959.

Gold dropped as the U. S. dollar was boosted by news that Janet Yellen is to be nominated to head the Federal Reserve

Bullion dropped after news Fed's shock decision last month not to reduce its support for U. S. economy was a "relatively close call" for policymakers

The SPDR Gold Trust has seen outflows of nearly 8 tonnes since the U. S. government shutdown on October 1.