Gold settled up 0.72% at 26196 prices extended gains to a one-month high on Wednesday ahead of FOMC minutes. While Comex Gold scaled a one-month peak after minutes from last month's US Fed meeting hinted to a decreased likelihood for interest rates to be raised in September, pushing the dollar lower. Minutes from the July meeting showed policymakers continued to fret that lagging inflation and a weak global economy posed too big a risk to commit to a "liftoff," though an improving job market edged the Fed closer to an interest rate hike. Only one Fed policymaker was ready to vote for a rate hike at the central bank's July 28-29 policy meeting, while some others "viewed the economic conditions for beginning to increase the target range for the federal funds rate as having been met or were confident that they would be met shortly," according to minutes from the meeting released on Wednesday. Market participants had been betting on a rate hike when Fed officials next meet in Sept given sustained strength in the world's largest economy. But some thought policymakers might take a gradual approach in lifting rates after China's surprise devaluation of its yuan last week. While Physical demand improves in India, according to GFMS, domestic gold demand in 2014 was 843 tonnes, which means demand this year could go up to
936 tonnes. India imported 495 tonnes of gold between January and July. Considering average 70-75 tonnes of scrap gold supply in a year, the country may have to import around 370-380 tonnes of gold in the remaining five months of 2015. Technically market is getting support at 25997 and below same could see a test of 25798 level, And resistance is now likely to be seen at 26317, a move above could see prices testing 26438.

Trading Ideas:

Gold trading range for the day is 25798-26438.

Gold gains to a one-month high ahead of FOMC minutes while Comex Gold scaled a one-month peak after Fed minutes.

Federal Reserve's policy meeting last month signaled that a hike in U. S. interest rates in September may be unlikely.

Holdings of SPDR Gold Trust, remained unchanged at 671.87 tons on Wednesday from its previous close