Gold settled flat at 28418 as all major exchanges in all regions where closed for the New Year. Today in early trades International Gold was steadied but held near a six-month low touched in the previous session after prospects for a global economic recovery prompted investors to abandon the safe-haven metal. After a 12-year bull run, gold tumbled 28 percent in 2013, with the U. S. Federal Reserve's plan to step away from ultra-loose monetary policy undermining the investor rationale for holding bullion. Growth in China's factories slowed slightly in December as export orders and output weakened, official data showed on Wednesday, adding to views that while the world's second-largest economy remains resilient, it lost some steam in late 2013. The data confirmed expectations for the Fed to continue winding down stimulus programs such as its USD75 billion in monthly bond purchases in 2014 and let the economy stand on its own feet. Fed bond purchases tend to weaken the dollar by driving down interest rates to spur recovery, thus bolstering gold's image as a hedge, though less monetary support can send gold falling. The Fed has rolled out multiple rounds of bond purchase since the 2008 financial crisis, and the increasing likelihood that 2014 will see less and less monetary intervention has sent gold prices plunging in 2013. Holdings in SPDR Gold Trust holding fell 40 percent in 2013 to their lowest level since 2009 as investors lost faith in bullion as a hedge against inflation, anticipating the U. S. Federal Reserve's move to trim its commodity-friendly bond purchases. Technically market is under long liquidation as market has witnessed drop in open interest by -3.77%. Now Gold is getting support at 28376 and below same could see a test of 28333 level, And resistance is now likely to be seen at 28476, a move above could see prices testing 28533.

Trading Ideas:

Gold trading range for the day is 28333-28533.

Gold settled flat at 28418 as all major exchanges in all regions where closed for the New Year.

Gold tumbled in 2013, with Fed's plan to step away from ultra-loose monetary policy undermining the investor rationale for holding bullion.

Investors had largely shrugged off industry data revealing that the Chicago purchasing managers' index fell to a seasonally adjusted 59.1