Gold prices rose and settled at 29547 that is up by +0.58% amid safe-haven demand after Cyprus said it would levy taxes on bank deposits. The move marks the first time a eurozone bailout addressed the sanctity of bank deposits, which weakened the euro and sparked demand for gold, often a hedge of choice when paper currencies roil. The one-time tax taking aim at Cypriot bank deposit holders as part of a EUR10 billion bailout deal sent the euro falling amid fears unease may grow since smaller depositors will be affected, which sparked a rally in gold markets. The move also spooked investors on sentiment that an era of eurozone bailouts that avoided touching bank deposits may now be ending. The euro erased earlier losses and found some support after parliament delayed voting on the measure and possibly soften the blow on smaller depositors, though demand for gold held steady. Russia was quick to criticize the move in Cyprus, home to large amounts of Russian deposits. Also prices for U. S. Treasuries, another safe haven, jumped, taking benchmark yields to their lowest in almost two weeks as the euro zone plan to seize money from Cypriot bank deposits rattled investors. Meanwhile Holdings of SPDR Gold Trust, dropped 13.542 tonnes, the biggest one-day decline in nearly a month, to 1,219.454 tonnes, the lowest since July, 2011. Now technically market is getting support at 29443 and below could see a test of 29340 level, And resistance is now likely to be seen at 29647, a move above could see prices testing 29748.

Trading Ideas:

Gold trading range for the day is 29340-29748.

Gold gained with some investors drawn to the bullion's safe haven properties as a radical bailout package for Cyprus shook sentiment in euro zone.

Euro zone ministers urged Cyprus to let smaller savers escape a levy on bank deposits

Holdings of SPDR Gold dropped 13.542 tonnes the biggest one-day decline in nearly a month, to 1,219.454 tonnes.