Gold settled down -1.13% at 30812 but prices recovered after the intial fall as the dollar weakened and US Treasury bond yields retreated on lingering uncertainty over when the Fed will reduce its economic stimulus program. Gold fell almost 1 percent earlier in the session, then turned higher as speculators bought futures to cover their bearish bets ahead of Wednesday's release of the minutes of the Fed's July policy meeting. Prices were lower earlier in the session as investors remained cautious ahead of the minutes of the Fed's July meeting, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program. Moves in the gold price this year have largely tracked shifting expectations as to whether the US central bank would end its QE program sooner-than-expected. US data on initial jobless claims and the housing sector later in the week will also be closely watched. Gold traders have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Any improvement in the US economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. Gold buying from China and India, also showed signs of slowing. In India, traders said they will start importing gold again over the next week, after the county's central bank clarified a rule that stopped the flow of the precious metal into the country at the end of July. Technically market is getting support at 30309 and below same could see a test of 29805 level, And resistance is now likely to be seen at 31248, a move above could see prices testing 31683.

Trading Ideas:

Gold trading range for the day is 29805-31683.

Gold dropped as worries over the U. S. stimulus outlook and technical selling dragged it lower.

Markets are waiting for the release of minutes from Fed's July policy meeting for clues on the timing of stimulus tapering.

Russia's gold reserves rose slightly to 32.2 million troy ounces in July from 32 million troy ounces in June.