Gold settled down -0.21% at 27866 as prices sold off due to bearish outside market forces that included a stronger U.S. dollar index and lower crude oil prices. There were geopolitical rumblings impacting trading Tuesday. The European Union and U.S. are slapping new sanctions on Russia. Meantime, the Israel-Hamas conflict appears not to be de-escalating. These matters helped to pressure world stock markets overnight, although the U.S. stock indexes had posted modest recoveries on Tuesday. The German 10-year bund yield fell to a record low Tuesday, on safe-haven moves by investors and traders. Meantime, U.S. Treasury bond prices posted a contract high and the U.S. dollar index hit a 5.5-month high Tuesday. The market place is also focused on the big slate of U.S. economic data on tap this week. The headliners include the Federal Reserve’s Open Market Committee meeting on Tuesday and Wednesday, and the key U.S. employment report on Friday. The U.S. second-quarter GDP report is also out on Wednesday. It’s likely the aforementioned reports will have a significant price impact on many markets. In the physical markets, demand was subdued as buyers were waiting on the sidelines for a possible drop in prices. Premiums in top buyer China were steady at about $2-$3 an ounce. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 801.84 from its previous close on Tuesday. Technically market is under long liquidation as market has witnessed drop in open interest by -6.9% to settled at 5088 while prices down -60 rupee, now Gold is getting support at 27764 and below same could see a test of 27662 level, And resistance is now likely to be seen at 28029, a move above could see prices testing 28192.

Trading Ideas:

Gold trading range for the day is 27662-28192.

Gold fell as investors nervously awaited the end of U.S. Federal Reserve's two-day policy meeting to see if the central bank will raise interest rates

Recent strong economic data has prompted many to believe that the Fed may raise rates sooner than expected.

U.S. second-quarter GDP data, due on Wednesday, and July employment numbers due on Friday are other indicators the market will be watching.