Gold settled down -0.49% at 28356 as pressure seen amid profit booking though prices gained on weekly basis as demand for the precious metal remained supported amid renewed concerns over the health of Portugal's banking sector and amid signs that U. S. interest rates will remain on hold for an extended period of time. In the physical markets, India caused a surprise by keeping the import duty on gold and silver unchanged at 10 percent in its fiscal budget, a move likely to limit overseas purchases by the second-biggest bullion consumer and further encourage smuggling.

Physical demand in other Asian countries was also weak due to the recent jump in prices. In No. 1 buyer China, local prices have been on par with the global benchmark or at a discount, underscoring sluggish demand. Holdings of the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Shares, edged lower after hitting near three-month highs this week, their first outflow since mid-June. The gold/silver ratio, which measures the number of silver ounces needed to buy an ounce of gold, held near its lowest since late February at 62.4 after the grey metal outperformed. Geopolitical uncertainty and concerns of any potential contagion into Portugal's wider banking sector and indeed the euro zone's wider banking sector were clearly supporting gold.

Concerns over the financial stability of the euro zone have driven gold prices sharply higher in previous years, as investors bought the metal as a safe store of value. Technically market is under long liquidation as market has witnessed drop in open interest by -5.21% to settled at 8847, now Gold is getting support at 28216 and below same could see a test of 28075 level, And resistance is now likely to be seen at 28513, a move above could see prices testing 28669.

Trading Ideas:

Gold trading range for the day is 28075-28669.

Gold dropped as pressure seen amid profit booking though prices gained on weekly basis on concerns over the health of Portugal's biggest bank.

Meanwhile, gold prices remained supported by expectations the Fed will keep rates on hold for an extended period.

In the physical markets, India caused a surprise by keeping the import duty on gold unchanged at 10 percent.