Gold yesterday settled up 0.82% at 27631 on Saturday as recovery seen after Friday's fall as investors locked in gains following a recent rally as mixed US economic reports eased investors' concerns over a possible near-term end to the Federal Reserve's stimulus program. Moves in the gold price this year have largely tracked shifting expectations as to whether the US central bank would end its quantitative easing program sooner-than-expected. Gold prices rose to an almost five-week high on Tuesday, a day after a weaker-than-expected report on US home sales fueled market talk that the Federal Reserve will keep stimulus measures in place for now. The National Association of Realtors reported earlier that existing home sales fell 1.2% to 5.08 million units in June, missing market calls for sales to rise 0.6% to 5.25 million units in June. Report added sales were up 15.2% from June of last year, while average house prices jumped 13.5% on a yoy basis. While the numbers indicated that recovery continues in the housing sector, markets concluded the figures were soft enough to sway monetary authorities to keep stimulus programs in place for now. An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies. In the week ahead, the Fed is to release its monthly monetary policy statement, which will be closely watched for indications on the future of the central bank's stimulus program. Technically market is getting support at 27519 and below same could see a test of 27408 level, And resistance is now likely to be seen at 27693, a move above could see prices testing 27756.

Trading Ideas:

Gold trading range for the day is 27408-27756.

Gold ended higher as wariness over the Fed's message at next week's monetary policy meeting pushed the dollar down.

Bullion has lost a fifth of its value this year as investors feared recovery in US might prompt the Fed to scale back its $85 billion monthly bond purchases.

Physical demand in China has been key to supporting gold prices this year amid the exit from ETFs.