Gold settled down by -0.41% at 27780 while trading in a narrow band for much of the day with little economic cues for direction. Investors also continued to opt for the riskier equity assets after the S&P 500 posted its first-ever finish above the 2,000 mark yesterday. On Thursday, markets will move on U.S. GDP data, weekly initial jobless claims and a report on pending home sales, with investors hoping the indicators will shed light on the pace of U.S. recovery as well as the future of monetary policy. Gold has come under pressure recently on sentiments that the Fed remains on track to close up stimulus programs around October and begin raising interest rates in 2015. Earlier Wednesday, gold prices rose as the dollar fell after German Finance Minister Wolfgang Schauble said markets may have branded recent comments out of the ECB as overly dovish. Investors flocked to the euro after Schauble said recent comments made by ECB President suggesting fiscal policy could spur growth were "overinterpreted." Draghi said week that the policy makers are ready to take more unconventional action if needed to stimulate a sluggish euro zone economy, which left many pondering the possibility that fiscal stimulus could accompany loose monetary policies to jumpstart European recovery. Schauble's comments came at the dollar's expense, which boosted gold earlier as the two asset classes tend to trade inversely with one another. Technically market is under fresh selling as market has witnessed gain in open interest by 2.36% to settled at 9553 while prices down -115 rupee, now Gold is getting support at 27721 and below same could see a test of 27663 level, And resistance is now likely to be seen at 27881, a move above could see prices testing 27983.

Trading Ideas:

Gold trading range for the day is 27663-27983.

Gold edged lower as stronger dollar and firmer equities due to hopes of more stimulus from ECB expected to check any big upside for the metal.

ECB is unlikely to take new policy action next week unless August inflation figures, due on Friday, showing eurozone sinking significantly towards deflation

Downside seen limited due to lower dollar and lingering geopolitical tensions helped offset selling pressure from a record rally in U.S. equities.