Gold prices pared gains as while the dollar turned up and U. S. stocks fell, as investors struggled to decipher the timing of a U. S. interest rate increase following comments by Federal Reserve Chair Janet Yellen and other officials. In her much-awaited speech, Yellen said the case for raising U. S. interest rates has strengthened, although increases should be gradual. Yellen pointed to improvements in the U. S. labor market and expectations for moderate economic growth, reinforcing the view that such a move could come later this year. She did not, however, lay out a clear roadmap for what the Fed needs to see to raise rates. Gold$ rallied 1.5 percent to $1,341.60 an ounce and the U. S. dollar index fell 0.6 percent after Yellen spoke, but bullion later gave back all its gains and the greenback rallied 0.7 percent after Fed Vice Chair Stanley Fischer suggested that rate hikes were on track for this year. Gold discounts in India fell to nearly three-month lows this week while fresh buying gathered some steam elsewhere in Asia as price corrections and festive buying lifted demand for the yellow metal. In India, the second-biggest gold consumer, dealers were offering discounts of up to $25 an ounce over official domestic prices, the lowest since the first week of June, and down from up to $52 last week. India's gold demand may rise in the second half of 2016 after falling to the lowest in seven years in the first half as beneficial monsoon rains will spur rural demand during the peak festive season, the World Gold Council said earlier this month. Technically now Gold is getting support at 30814 and below same could see a test of 30638 level, And resistance is now likely to be seen at 31243, a move above could see prices testing 31496.

Trading Ideas:

Gold trading range for the day is 30638-31496.

Gold prices pared gains as while the dollar turned up and U. S. stocks fell, as investors struggled to decipher the timing of a U. S. interest rate increase.

Yellen said the case for raising U. S. interest rates has strengthened, although increases should be gradual.

Gold discounts in India hit near three-month lows this week, while buying gathered steam elsewhere in Asia as lower prices and festive buying lifted demand.