Gold yesterday traded under pressure and settled marginal down by -0.33% at 31312 as rupee rallied by +0.63% to close at nearly 5month high of 52.46 against the US currency following sustained dollar selling by exporters amid sustained capital inflows in rising local equities, extending gains for the 4th straight trading session. While gold on comex closed in the positive zone holding with minor gains from the previous two sessions as investors awaited cues from central banks on their plans to shore up the frail global economy, while a key US employment report was also in focus. The euro zone's economic woes accelerated last month and China's slowdown looked likely to extend to a seventh quarter showed, while the US proved the bright spot with better than expected news on services and jobs. Later in the day, the ECB will hold a policy meeting and announce its rate decision. For the first time in months, the ECB's main focus will be interest rates and whether they can be reduced to support a recession-bound euro zone economy. Investors will closely watch the US nonfarm payrolls data Friday, which is expected to show that job growth may have improved slightly. Holdings of gold-backed ETF had inched up to 74.152mn ounces by Oct. 2, just off a record high of 74.288mn ounces hit in late Sept. Now technically market is getting support at 31268 and below could see a test of 31224 level, And resistance is now likely to be seen at 31388, a move above could see prices testing 31464.

Trading Ideas:

Gold trading range for the day is 31224-31464.

Gold prices dropped as rupee firmness and a drop in crude oil and a firmer dollar weighed on prices

Gold and gold receivables held by euro zone central banks rose in value by 45.5 billion euros to 479 billion euros after a quarterly revaluation

Holdings of gold-backed exchange-traded funds had inched up to 74.152 million ounces by Oct. 2, just off a record high of 74.88 million ounces