Gold on MCX settled down -0.67% at 28751 as the dollar strengthened and expectations for a U.S. interest rate hike this month weighed, though moves were muted ahead of key U.S. data. Markets dramatically adjusted expectations for U.S. interest rate hikes this year following hawkish comments from several top Fed officials last week. The U.S. economy is on track to grow at a 1.3 percent annualized pace in the first quarter following the latest data on domestic vehicle sales and factory orders, the Atlanta Fed's GDP Now forecast model showed. China's gold reserves were unchanged at 59.24 million fine troy oz at the end of February, the country's central bank said on Tuesday. Gold reserves value rose to $74.376 billion at the end of February, from $71.292 billion at end-January, data published on the People's Bank of China website also showed. Early last week, financial markets saw just a 30 percent chance of the Fed raising interest rates in March; but by Friday after a striking series of comments from Fed officials, traders saw an 80 percent chance. Meanwhile, investors await non-farm payrolls for February on Friday, viewed as a critical barometer of the U.S. economy and represents the final key economic data point ahead of the Federal Reserve’s policy meeting on March 14-15. Technically market is under fresh selling as market has witnessed gain in open interest by 2.49% to settled at 6039 while prices down -194 rupees, now Gold is getting support at 28665 and below same could see a test of 28579 level, And resistance is now likely to be seen at 28893, a move above could see prices testing 29035.

Trading Ideas:

Gold trading range for the day is 28579-29035.

Gold dropped as the dollar strengthened and expectations for a U.S. interest rate hike this month weighed, though moves were muted ahead of key U.S. data.

Markets dramatically adjusted expectations for U.S. interest rate hikes this year following hawkish comments from several top Fed officials last week.

China's gold reserves rose to $74.376 billion at the end of February, from $71.292 billion at end-January, data showed.