Gold settled up 0.45% at 27895 but strong U.S. economic data and expectations of more stimulus from the ECB dragged on the metal as they boosted the appeal of the U.S. dollar and equities. In some upbeat economic news, orders for U.S. durable goods surged by a record 22.6 percent in July as Boeing signed a record number of contracts for new jets, a government report showed Tuesday. Meanwhile, consumer confidence in the U.S. continued to improve for a fourth consecutive month in August, with the consumer confidence index jumping to its highest level in almost seven years, a Conference Board report showed Tuesday. Nonetheless, geopolitical worries continued to plague the precious metal with the ongoing unrest in Ukraine and Libya contributing to bullion's rise. Investors focused on developments in Ukraine and the Middle East, look ahead to the meeting of Ukrainian President Petro Poroshenko and Russian President Vladimir Putin at a summit in Minsk in Belarus. Meanwhile, news reports say Ukrainian forces have captured some Russian soldiers near the Donetsk region. In the Gaza Strip, Israel has stepped up pressure on Hamas, bombing two high-rise structures in the city. On Monday, gold futures ended lower on some strong global equity markets and amid uncertainty about a Fed rate hike after Fed Chair Janet Yellen failed to provide any clarity on the issue at the Jackson Hole Symposium. Nonetheless, the ECB President Mario Draghi was more forthright while indicating the ECB might come out with more stimulus if inflation dropped further. Technically market is getting support at 27786 and below same could see a test of 27677 level, And resistance is now likely to be seen at 28022, a move above could see prices testing 28149.

Trading Ideas:

Gold trading range for the day is 27677-28149.

Gold gained after a pause in dollar rally prompted buying, but pared gains as strong U.S. data pushed investors to equities.

The Conference Board's measure of U.S. consumer confidence rose more than expected in August, hitting its highest level since October 2007.

SPDR gold trust holdings dropped by 1.49 tonnes i.e. 0.19% to 795.60 tonnes from 797.09 tonnes.