Gold futures dipped by more than 3% to settled at 26738, last session on Saturday we have seen gains coming after Federal Reserve Chairman Ben Bernanke said the central bank remained prepared to implement fresh stimulus measures, but today gold prices declined as investors locked in gains and also rupee firmness against dollar added oil to fire creating pressure in the early sessions. In a highly-anticipated speech at the central bank’s annual retreat in Jackson Hole, Wyoming, Fed Chair Bernanke said the central bank remained prepared to implement fresh measures to stimulate the faltering US economy. The Fed has a range of tools that could be used to provide additional monetary stimulus, Bernanke said without outlining when and if this may happen.  Bernanke also announced that the central bank’s September policy-setting meeting would be extended to two days from one, in order to “allow a fuller discussion” on the economy. Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. Now technically market is trading in the range as RSI for 18days is currently indicating 60.17, where as 50DMA is at 24507 and gold is trading above the same and getting support at 26443 and below could see a test of 26149 level, And resistance is now likely to be seen at 27215, a move above could see prices testing 27693.

Trading Ideas:

Gold trading range is 26149-27693.

Gold prices dropped as higher equities and easing worries about recession in the US limited gains.

The Fed has a range of tools that could be used to provide additional monetary stimulus

Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset