Gold yesterday settled down by -0.55% at 26707 for a fourth consecutive session as economic optimism and another intraday record high in US equities sapped bullion's safe-haven appeal. The precious metal erased earlier gains after the S&P 500 index rallied almost 1 percent on broad gains in shares in banks and financial institutions. Gold also extended losses after credit-rating agency Fitch's upgraded Greece's sovereign credit rating by one notch, citing the country's progress in cutting its budget deficit and the receding risk of its euro zone exit. A halt in the liquidation in exchange-traded funds after months of hefty outflows, and strong physical demand in coins and bars around the world after the mid-April selloff provided underlying demand. Meanwhile holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, stood unchanged after a string of heavy outflows, raising hopes that gold ETF liquidation might have finally finished. The fall in gold prices last month led to a surge in physical buying in Asia and elsewhere, helping to pluck prices off lows, but physical demand for some gold products began to subside. Also conflicting data prompted investors to seek safe harbor on the liquid greenback until more definitive indicators arrive and serve as a weather vane for currency markets, prompting a selloff in gold markets in the process. Technically market is under fresh selling as market has witnessed drop in open interest by -5.69% to settled at 13471 while prices down -147 rupee, now gold is getting support at 26600 and below same could see a test of 26493 level, And resistance is now likely to be seen at 26866, a move above could see prices testing 27025.

Trading Ideas:

Gold trading range for the day is 26493-27025.

Gold dropped as economic optimism and another intraday record high in U. S. equities sapped bullion's safe-haven appeal.

Gold also extended losses after credit-rating agency Fitch's upgraded Greece's sovereign credit rating by one notch

RBI notified its proposal to restrict import of bullion by banks only on a consignment basis to meet the genuine needs of exporters of gold jewellery.