Gold settled up 0.28% at 30840 to an eight-week high last week, after a series of downbeat US economic data dampened speculation the Federal Reserve will begin to taper its bond-buying program as soon as September. Moves in the gold price this year have largely tracked shifting expectations as to whether the US central bank would end its quantitative easing program sooner-than-expected. Also support seen as Rupee dropped to a record low of 62.03 per dollar on Friday, sparking late intervention from the central bank as its measures to tighten capital outflows raised concerns they could spook foreign investors. RBI late on Wednesday unveiled rules to restrict how much its citizens and companies can invest abroad and announced additional curbs on gold imports. The steps raised concerns of outright capital controls that would further undermine the confidence of foreign investors and also that they did not address the need to attract overseas investments to narrow the record high current account deficit. Gold traders have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies. Support seen as SPDR Gold Trust, said its holdings rose 0.26 percent to 915.32 tonnes on Friday. Technically market is getting support at 30691 and below same could see a test of 30542 level, And resistance is now likely to be seen at 30979, a move above could see prices testing 31118.

Trading Ideas:

Gold trading range for the day is 30542-31118.

Gold rose as weaker-than-forecast U. S. data took some steam out of expectations for early Federal Reserve stimulus reduction.

U. S. housing starts increased 5.9 percent to a seasonally adjusted annual rate of 896,000 units.

Investors are so concentrated on the whole talk about tapering that any disappointing U. S. data can bolster prices.