Gold traded in the range but settled with a positive node with a gain of 175rs at 29746 as support seen from rupee fell for a second straight session consolidating after a recent rally as traders braced for an interest rate cut from the European Central Bank that, as expected, was delivered after the close of markets. But Gold tumbled several times this year after the Federal Reserve did not mention further easing, was under pressure after monetary easing by the top three central banks signaled a growing level of alarm about the world economy. Gold's inflation-hedge appeal was weakened by the prospect of slowing economies around the world. The central bank chief stated that there was probably a "renewed weakness in economic growth" in the last three months, with "heightened uncertainty”. Meanwhile, dollar found support after positive US employment data eased expectations for further monetary easing measures by the Fed. Investors have been speculating that Thursday’s data could trigger the Fed to implement a QE3 to shore up the economy, which has been hit by the ongoing crisis in the euro zone. Even China's central bank slashed interest rates for the second time in two months on in an effort to boost slowing growth in the world's second largest economy. Now technically market is getting support at 29612 and below could see a test of
29478 level, And resistance is now likely to be seen at 29858, a move above could see prices testing 29970.

Trading Ideas:

Gold trading range for the day is 29478-29970.

Gold gains due to rupee weakness but upside was limited due to frustrations over a lack of more aggressive market stimulus

People’s Bank of China unexpectedly announced that it had lowered its benchmark interest rate by 0.31% to 6.00%

ECB cuts benchmark interest rate by 25 bps TO 0.75% as expected from 1.00%