Gold settled up 2.05% at 31444 due to a weaker rupee, while demand remained subdued ahead of the resumption of imports. While COMEX Gold was largely traded flat in the range as traders digested the minutes from the latest Fed policy meeting which showed few clues about the timing to scale back its bond-buying stimulus. Trading was choppy in a less-liquid in morning session as the US central bank's statement showed a few Fed policymakers thought last month it would soon be time to slow the pace of their bond buying "somewhat" but others counselled patience. Investors are anxiously waiting to see when the Fed will start to slow its $85 billion monthly asset purchases, with most predicting September as the beginning of the end of the QE program. A rise in US Treasury yields, seen as a gauge of interest rates, appears to weigh down on precious metals and equities across the board. The minutes of the Fed's July 30-31 meeting, released on Wednesday, showed that a few officials thought last month it would soon be time to slow the pace of their bond buying "somewhat" but others counseled patience. In June, Bernanke said the bank expected to trim stimulus later this year and to halt it by mid-2014, prompting the markets to believe the tapering would begin in September. Support seen as South Africa's National Union of Mineworkers said it would ballot its members this week on whether to go on strike after gold miners' wage talks stalled, raising the prospect of crippling stoppages in an industry in terminal decline. While SPDR Gold Trust said its holdings once again fell 0.07 percent to 913.52 tonnes on Wednesday. Technically market is getting support at 30864 and below same could see a test of 30285 level, And resistance is now likely to be seen at 31783, a move above could see prices testing 32123.

Trading Ideas:

Gold trading range for the day is 30285-32123.

Gold rose as the rupee weakened, but demand remained subdued ahead of the resumption of imports.

Fed minutes showed that few officials thought last month it would soon be time to slow the pace of their bond buying "somewhat" but others counseled patience.

Demand from China and India is expected to hit 1,000 tonnes each this year, according to the World Gold Council.