Gold slipped in thin trade to settle at 30698 that is a fall of -0.51% as uncertainty over whether the US would be able to avoid a fiscal crisis kept investors at bay, but lower prices spurred buying from jewellers. President Obama is likely to leave his vacation in Hawaii to return to Washington as early as Wednesday to address the unfinished "fiscal cliff" negotiations with Congress. A deal to avert the so called fiscal cliff of tax hikes and spending cuts that kick in at the start of next year and threaten to tip the world's largest economy back into recession would offer trading direction to financial markets. While gold is typically a safe-haven asset that gets a boost from economic uncertainties, it has increasingly been behaving like a risk asset and could also gain if a US resolution comes through. Despite of fall Gold is still on track for a 12th straight year of gains on rock-bottom interest rates, concerns over the financial stability of the euro zone, and diversification into bullion by central banks. Most gold investors are waiting for the outcome of the US fiscal talks after the House of Representatives failed to pass its own budget measures last week. Volumes were expected to remain light, with year-end positioning and profit-taking driving flows. Lower than usual volumes could spark volatile trading, resulting in rapid changes in metal prices during the final weeks of the year. Now technically market is getting support at 30637 and below could see a test of 30576 level, And resistance is now likely to be seen at 30783, a move above could see prices testing 30868.

Trading Ideas:

Gold trading range for the day is 30576-30868.

Gold dropped as uncertainty over whether the United States would be able to avoid a fiscal crisis kept investors at bay.

In the physical market, gold dealers noted buying interest from bargain hunters and jewellers in Southeast Asia.

Gold demand in India rose as prices eased following a drop in the world market and on a firm rupee.