Gold settled up 0.95% at 29798 as support seen from the rupee fell for a third consecutive session on Monday to its lowest against the dollar since mid-November as a broad emerging market sell-off raised worries foreign investors would pare down their domestic stock and bond holdings. Also the Reserve Bank of India's policy review on Tuesday also kept investors cautious. While Comex Gold settled down at 1255 as investors bet the Federal Reserve will conclude a monetary policy meeting on Wednesday by announcing further cuts to its USD75 billion monthly bond-buying stimulus program. Last week yellow metal advanced on signs of solid physical demand in Asia. China probably overtook India as the biggest purchaser of the precious metal. China's gold imports more than doubled in the first 11 months of 2013, approaching 1,060 tonnes. Meanwhile, the second part of the week was negative for gold futures as speculation that the Fed will reduce its stimulus reduced gains of the bullion. Yesterday the metal was weighed down by expectations that the Fed could trim monetary stimulus further from the $10 billion-a-month reduction to its bond purchases decided in December. The FOMC is scheduled to begin its two-day policy meeting on Tuesday. Bullion initially rallied toward $1,280 an ounce after data showed Chinese gold imports from Hong Kong surged to a record high in 2013. Investors were looking ahead to the outcome of the Fed's monthly meeting on Wednesday, amid expectations for a reduction in its bond buying program to USD65 billion from the current USD75 billion. Technically market is getting support at 29615 and below same could see a test of 29433 level, And resistance is now likely to be seen at 29914, a move above could see prices testing 30031.

Trading Ideas:

Gold trading range for the day is 29433-30031.

Gold gained on rupee weakness and on worries that capital outflows from emerging economies would continue, boosting bullion's safe-haven appeal

The metal is struggling to maintain last week's gains ahead of the Fed's two-day policy meeting, which starts on Tuesday.

China's net gold imports from Hong Kong rose 24% in December from the previous month, bringing purchases for 2013 to a record 1,158 tonnes.