Gold settled up by 0.06% at 27570 rebounded to end slightly higher on Wednesday, due mainly to some bargain hunting after yesterday's sharp fall, even as investors tracked rising global equity markets and some positive factory orders data from the US. Strong equity markets amid conflicting reports about a ceasefire agreement between Russia and Ukraine continued to limit the bullion's gains. Manufacturing activity in the U.S. grew at an accelerated pace in August with orders for transportation equipment indicating a substantial increase, data from the ISM showed Tuesday. There was also some upbeat economic news out of China, with a report showing the Chinese service sector activity to have grown at a faster rate in August. On Tuesday, gold futures ended sharply lower on some upbeat U.S. economic data, with a stronger dollar amid expectations of fresh monetary stimulus by the ECB contributing to the decline. In economic news from the U.S., a report from the Commerce Department showed factory orders to have surged up by 10.5 percent in July, after climbing by an upwardly revised 1.5 percent in June. Economists had been expecting orders to jump by about 10.9% compared to the 1.1% increase originally reported for the previous month. While Holdings of SPDR Gold Trust, edged down to 793.20 tons on Wednesday, from its previous close of 795.00 tons on Tuesday. Meanwhile trader are eyeing on Thursday's, the ECB will announce its monetary policy. Hopes about fresh stimulus from the ECB have risen after eurozone retail sales declined by a more than expected 0.4 percent in July. Technically market is under short covering and getting support at 27418 and below same could see a test of 27267 level, And resistance is now likely to be seen at 27670, a move above could see prices testing 27771.

Trading Ideas:

Gold trading range for the day is 27267-27771.

Gold prices recovered losses as lingering tensions over Ukraine and a weaker dollar prompted bargain hunting and short covering

Prices earlier seen under pressure following reports that Ukraine and Russia had reached a ceasefire agreement in eastern Ukraine.

SPDR gold trust holdings dropped by -2.69 tonnes i.e. 0.34% to 790.51 tonnes from 793.20 tonnes.