Gold yesterday settled down by -1.49% at 26310 softened to four-week lows after a string of disappointing economic indicators in the U. S. and Europe sparked safe-haven demand for the liquid greenback and suppressed appetite for risk-on asset classes such as precious metals. Gold slid below $1,400 an ounce losing two% and hitting its lowest in nearly a month as a record rally in U. S. equities and economic optimism undermined bullion's safe-haven appeal. The metal fell for a fifth straight session for its longest daily losing streak since January 2011 as the S&P 500 hit a new all-time high and Wall Street has risen for four consecutive sessions. A pause in strong physical demand after news India restricted imports to cut trading deficit also weighed on gold. Wednesday's fifth consecutive daily fall would be its longest run of losses since January 2011. As a gauge of investor sentiment, holdings at SPDR Gold Trust, were unchanged at 33.8 million ounces, but still within sight of their lowest since March 2009 hit earlier. Gold buying in India came to a halt as the country's central bank restricted imports after a surge in buying in April sent the trade deficit to $17.8 billion for the month, up more than 72% from March. India's gold and silver imports surged 138% on the year in April as customers took advantage of lower prices, increasing pressure on the current account balance and limiting the space for monetary easing. .

Also WGC said in their latest report that China's gold demand in the first quarter outstripped that of India for the first time in a year, with both countries' buying surging due to strong jewelry sales in China around the Lunar New Year and high bar and coin appetite in India. China and India are the world's two biggest gold buyers, representing nearly 60% of global consumer demand in the first quarter, and buying trends in these countries are closely watched by investors in the gold market. China's first-quarter demand totaled 294.3 metric tons, up 20% on-year, while India's demand rose 27% to 256.5 tons. Robust China and India buying activity in the first quarter came ahead of a sharp price drop to two-year lows in April, which spurred buying interest from retail investors across Asia that market expect will bolster gold demand substantially through the second quarter. Gold's recent weak price performance is at odds with high retail demand in Asia, where dealers are reporting tight supply of bars and coins and rising premiums to secure bullion.

India and China together contributed 62% of global gold jewelry demand in the first quarter, with buying particularly strong in China around the Lunar New Year.

China's jewelry demand rose 19% to 184.8 tons, and India's rose 15% to 159.5 tons.

In India, buying interest ahead of the second-quarter wedding season and a dip in local gold prices helped offset an increase in gold import duties in late January. The increase in import duties came as the Indian government aims to reduce  the flow of gold into the country to limit its yawning current account deficit. Demand for bars and coins rose 22% on-year to a quarterly record of 109.5 tons in China and 52% to 97 tons in India. In India, the increase in the first quarter was magnified by weak sales in the year-earlier period, though the volume of sales was higher than the quarterly average of 71.2 tons over the past five years, the WGC said. Technically market is getting support at 26097 and below same could see a test of 25884 level, And resistance is now likely to be seen at 26613.