Gold slipped lower and closed at 29432 as investors flocked to the relatively safety of the US dollar following the release of a spate of weaker than expected US economic data. In a report, market research group Kingsbury International said that mfg activity in the Chicago area slowed to 52.7 vs 56.2. US gdp increased at a seasonally adjusted annual rate of 1.9% during the Q1, in line with expectations and down from a preliminary estimate of 2.2%. Meanwhile, concerns over the strength of the US labor market grew after weekly data from the US Dept of Labor showed that the number of individuals filing for initial jobless benefits rose by 10k to 383k last week. Gold investors will be closely watching US data in the Q2 for clues as to the likelihood of a fresh round of QE by the Fed, which could potentially hurt the dollar and support gold. Elsewhere, concerns remained over Spain's deteriorating financial situation, where rising bond yields, the growing costs of bank rescues and a recession hit economy fuelled fears that Madrid will be forced to seek an international bailout. A fears over the possibility of a Greek exit from the euro zone and growing concerns Spain will be the next euro zone member to require a bailout dominated market sentiment. Now technically market is trading in the range as RSI for 18days is currently indicating 57.28, where as 50DMA is at 29099 and gold is trading above the same and getting support at 29309 and below could see a test of 29185 level, And resistance is now likely to be seen at 29559, a move above could see prices testing 29685.

Trading Ideas:

Gold trading range for the day is 29185-29685.

Gold dropped as a deepening euro zone debt crisis buoyed the dollar and dented bullion's safe-haven draw.

In Asia's physical market, buying interest emerged when prices fell $1,530 but selling kicked in after prices rebounded.

Gold investors will be closely watching US data in Q2 for clues as to likelihood of a fresh round of QE by Federal Reserve