Gold settled up 0.38% at 31876 as support seen from rupee weakness as month-end dollar demand from importers dragged the currency lower, prompting the central bank to step up its dollar sales in late trade, pulling it off session lows. While COMEX Gold fluctuated between gains and losses, following an advanced to the highest figure since June, while investors weighed the prospects for QE measures in the US, with a decline in new-home sales. Bullion for immediate settlement jumped 0.7% to $1,407.18 per ounce, the highest level since June 7, head of falling 0.5%. Gold erased early gains that pushed it past the psychological $1,400 mark to an 11-week high, slipping on uncertainty over whether the US Fed will wind back its stimulus measures from next month. The Fed could announce a cautious first step in tapering bond purchases at its meeting next month, provided there were no "really worrisome" signs the economy was faltering, a top US central banker said on Saturday. Also SPDR Gold Trust, said its holdings rose 0.72 percent, to 920.13 tonnes on Friday. And Hedge funds and money managers boosted bullish bets in gold futures and options to their highest level since early February, buoyed by the uncertain timing of the Fed's planned unwinding of its bond-buying stimulus, a report by the CFTC showed on Friday. Gold also found support on solid physical from India ahead of the wedding season that traditionally starts in late September. Gold bar and coin sales skyrocketed 78% y-o-y last quarter as consumption in India and China more than doubled, reported the WGC. Technically market is getting support at 31692 and below same could see a test of 31507 level, And resistance is now likely to be seen at 32056, a move above could see prices testing 32235.

Trading Ideas:

Gold trading range for the day is 31507-32235.

Gold remained firm after data showing that U. S. durable goods orders plunged by the most in almost a year in July

The Commerce Department said durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline.

India considering payment proof for jewellery exporters