Gold settled down -0.41% at 27648 tracking weakness from Comex Gold which ends below $1,300 after Janet Yellen's testimony. Gold prices have fallen for a second day, after some mixed economic data from the U.S. and hawkish remarks from U.S. Fed Chair Janet Yellen, following the precious metal's sharp plunge yesterday with investors booking profit on recent gains. Gold futures turned negative after Fed Chairman Janet Yellen told Congress that the Federal Reserve may raise interest rates sooner than earlier forecast if improvements in the U.S. labor market are sustained. "If the labor market continues to improve more quickly than anticipated by the Committee, resulting in faster convergence toward our dual objectives, then increases in the federal funds rate target likely would occur sooner and be more rapid than currently envisioned," Yellen said in prepared remarks to the Senate Committee on Banking, Housing, and Urban Affairs. In some mixed economic news from the U.S., retail sales in June rose less than expected, with business inventories also improving less than expected in May. Nonetheless, business conditions for New York manufacturers improved significantly for a third consecutive month in July, reaching its highest level in more than four years. Since Monday, gold futures plunged nearly 3.5 percent with investors opting to book profit on recent gains made by the precious metal and the low physical demand for gold. Meanwhile Holdings of SPDR Gold Trust, rose to 808.73 tons on Tuesday, from its previous close of 800.05 tons. Technically market is under long liquidation and getting support at 27508 and below same could see a test of 27367 level, And resistance is now likely to be seen at 27869, a move above could see prices testing 28089.

Trading Ideas:

Gold trading range for the day is 27367-28089.

Gold dropped as bullion investors focused on Fed monetary policy report showing the central bank is set to end its bond-buying stimulus in October.

Yellen said the one thing that might prompt the central bank to raise rates earlier or faster is if hiring and wages take off in an unexpected way.

A strengthening U.S. economy and job market means the Fed should begin raising interest rates "relatively soon