Gold settled up 0.34% at 28730 tracking gain's from Comex Gold which is well-supported above $1,300 an ounce as weak investor morale in Germany and fears over the economic impact on Europe from the crisis in Ukraine prompted investors to seek safety in bullion. Some dovish remarks from Federal Reserve Vice Chair Stanley Fischer yesterday failed to give the precious metal much of a lift, suggesting gold futures may have topped out for now. Fischer said U. S. and global economic recoveries have been somewhat disappointing so far, hinting that the Fed will maintain its ultra-low interest rates for an extended period. Weakness in European equity markets on the back of some soft German economic data also contributed to gold's stagnation. The ECB has been stubbornly adhering to current monetary policy, but market say the ECB will be compelled to issue further stimulus in the coming months. Meanwhile tensions in the Middle East also boosted gold's appeal as an alternative investment as the Obama administration has sent about 130 additional military personnel to Iraq, U. S Defense Secretary Chuck Hagel said on Tuesday, as Washington seeks to help Iraq contain the threat posed by hardline militants from the Islamic State. Talks to end a month-long war between Israel and Gaza militants are "difficult", Palestinian delegates said, while Israeli officials said no progress had been made so far and fighting could soon resume. From the physical side holdings of SPDR Gold Trust, remained unchanged at 795.86 tons on Tuesday from its previous close. Technically market is getting support at 28557 and below same could see a test of 28383 level, And resistance is now likely to be seen at 28898, a move above could see prices testing 29065.

Trading Ideas:

Gold trading range for the day is 28383-29065.

Gold settled flat as investors awaiting for further cues on U. S. monetary policy amid lingering concerns over geopolitical tensions.

Tensions in the Middle East also boosted gold's appeal as Obama administration has sent additional military personnel to Iraq.

Gold has gained this year, largely on tensions between the West and Russia over Ukraine and violence in the Middle East.