Gold settled down -2.09% at 27762 to end sharply lower on Monday, with investors on a profit-taking spree on recent gains made by the precious metal and the low physical demand. With appetite for riskier assets picking up, investors largely ignored geopolitical tensions amid rising equities. Gold prices were also impacted after concerns over Portugal's banking industry eased, which had earlier prompted investors to seek the safe haven of the yellow metal. Traders are also looking ahead to quarterly earnings reports and some crucial comments from central bank heads coming up later in the week.

Gold futures gained 1.3 percent last week, as renewed worries about the European economy on recent weak data from France and Italy and concerns about Portugal's banking sector prompted investors to seek the safe haven of the precious metal. From India in a move that will upset many gold jewellery buyers, the government has brought the hugely popular installment schemes under the definition of public deposits. It means that most jewellers have to lower the effective returns on these schemes, and also limit the total deposits collected.

Now Investors are eyeing physical buying in Asia, which has been subdued due to the recent price gains. There isn't much demand from India, China or anywhere in Southeast Asia for the last few weeks. Also Holdings of SPDR Gold Trust, remained unchanged at 800.05 tons on Monday from its previous close. Technically market is under long liquidation as market has witnessed drop in open interest by -2.15% to settled at 8657 while prices down -594 rupee, now Gold is getting support at 27558 and below same could see a test of 27353 level, And resistance is now likely to be seen at 28136, a move above could see prices testing 28509.

Trading Ideas:

Gold trading range for the day is 27353-28509.

Gold slid as fading fears over Portugal's banking sector and a gain in U. S. equities prompted investors to take profits.

European Central Bank President Mario Draghi reiterated at a quarterly policy meeting that the ECB will introduce quantitative easing (QE) if need be.

SPDR gold trust holdings gained by 8.68 tonnes i. e. 1.08% to 808.73 tonnes from 800.05 tonnes.