Gold settled down -0.16% at 29241 due to investors' evaluation of rally's impact on demand when the Dollar appreciated. Gold's 12-year appreciation ended in 2013, when the Fed decided to reduce its unprecedented monetary stimulus, forcing a rally in asset prices, but at the same time failing to boost inflation. In revisions to its World Economic Outlook report published IMF said it expects the global economy to grow by 3.7% in 2014, up from an October forecast of 3.6% growth. The news fueled expectations for central banks to wind down stimulus programs such as bond purchases going forward, the Fed's especially, as the multilateral lending institution predicted the U. S. economy to expand 2.8%, up from an October forecast of 2.6%. Many market participants expect the Fed to trim its quantitative easing program to USD65 billion from the current USD75 billion at its next policy meeting on Jan. 29. While Fed bond purchases aim to prop up the economy by suppressing long-term interest rates, thus weakening the dollar as a side effect as investors flock to asset classes like stocks, which makes gold an attractive inflation hedge. Gold purchases in China, have slowed from last week's levels as gold prices have gained for four straight weeks. Chinese gold imports, look set to fall from last year's record levels. Traders continue to monitor gold investment interest after data showed that holdings in SPDR Gold Trust, posted the first increase in a month. Technically market is under long liquidation as market has witnessed drop in open interest by -3.39% to settled at 7797 while prices down -47 rupee, now Gold is getting support at 29148 and below same could see a test of 29055 level, And resistance is now likely to be seen at 29316, a move above could see prices testing 29391.

Trading Ideas:

Gold trading range for the day is 29055-29391.

Gold fell hit by widespread speculation that Fed might announce a further cut in its bond-buying program at a meeting next week.

The International Monetary Fund raised its global growth forecast for the first time in nearly two years.

FOMC in its last policy meeting in December, U. S. central bank decided to cut its monthly bond purchases by $10 billion to $75 billion.