Gold prices rose marginally by +0.36% to settled at 30711 yesterday after investors viewed the precious metal as a safe haven asset ahead of the European Central Bank's Thursday monetary policy meeting. Concerns the European Central Bank may warn the European economy still faces hurdles prompted investors to ditch the euro and take up safe-haven positions in gold, especially on news that physical demand in China is on the rise. The euro has strengthened in recent weeks, fueling fears the European Central Bank may find it tough to craft policies that both foster recovery and control inflation. Meanwhile in Germany, government data revealed that the country's factory orders rose 0.8% in December, missing expectations for a 0.9% gain though much better than November's 1.8% contraction. Meanwhile India's central bank could limit gold imports by banks in "extreme circumstances", it said on Wednesday, as it put forward measures to help the world's biggest consumer of gold rein in purchases and battle a record-high current account deficit. Underpinning prices was Tuesday's data showing record-high annual gold flows from Hong Kong into China in 2012. China is vying with India to be the leading buyer of bullion. The positive economic data that has undermined gold fuelled interest in the platinum group metals, which are largely used in auto catalytic converters and are highly sensitive to car demand. Now technically market is getting support at 30595 and below could see a test of 30479 level, And resistance is now likely to be seen at 30797, a move above could see prices testing 30883.
Gold trading range for the day is 30479-30883.
Gold recovered to edge higher after stocks came under pressure from renewed concerns over the euro zone economy.
The Reserve Bank of India said it could limit gold imports by banks in "extreme circumstances".
Gold importers in India awaited direction as metal continued to tread water when the central bank recommended more import curbs.
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