Gold yesterday settled up 0.23% at 27677 recovered from the day's low of 27342 as Rupee fell to within striking distance of a record low, as market waited for word from policymakers on steps designed to boost inflows and prop up the battered currency. While Comex Gold dropped sharply in yesterday's early session after strong US trade data and comments by a Fed official stoked fears the central bank could start tapering its stimulus from next month. Bullion has lost nearly a quarter of its value this year after 12 annual gains as markets anticipate a reduction in the Fed's $85 billion monthly bond purchases. With physical demand at subdued levels during the seasonally soft summer period, investors are closely monitoring economic data from the US to gauge the timing of stimulus tapering. The Fed will probably reduce its massive bond-buying stimulus programme later this year, and depending on economic data could do so as early as September, Charles Evans said on Tuesday. The US economy likely grew faster than initially reported in the second quarter, thanks to a sharp narrowing in the trade deficit to its lowest in more than 3-1/2 years in June as exports touched a record high and imports fell. Meanwhile Gold premiums in India eased due to a lack of buying support in the physical market, as traders survived on old stocks amid an absence of fresh imports. Also market is awaited for clarity from the government on operational issues for shipments. SPDR Gold Trust said its holdings fell 0.5 percent to 910.53 tonnes on Wednesday. Technically market is getting support at 27440 and below same could see a test of 27203 level, And resistance is now likely to be seen at 27816, a move above could see prices testing 27955.

Trading Ideas:

Gold trading range for the day is 27203-27955.

Gold gained as the dollar fell on lingering uncertainty about the scope and timing of Fed's eventual tapering of its bond-buying program.

Evans said U. S. central bank will probably trim its QE programme later this year and could do so as early as September

Gold importers in India remained on the sidelines on Wednesday as they awaited clarity from the government on operational issues for shipments.