Gold declined for the fourth consecutive day, as the dollar strengthened after ratings agency Moody's downgraded the credit ratings on six European countries, including Spain and Italy, while markets continued to eye developments surrounding Greece. Market sentiment took a hit following an announcement from Moody's late Monday that it downgraded its credit ratings on Italy, Portugal and Spain. France and Austria kept their top ratings but had their outlooks dropped to "negative" from "stable." Moody's also cut its ratings on the smaller nations of Slovakia, Slovenia and Malta, while warning that it could downgrade the U. K., rekindling contagion worries. The ratings firm's actions follow similar moves by S&P's and Fitch Ratings last month where multiple downgrades were made all at once. Meanwhile, investors continued to monitor developments surrounding Greece. The debt-laden country's parliament approved a set of spending and wage cuts needed to secure the country's EUR130 billion bailout package and avoid a sovereign debt default. Now technically market is trading in the range as RSI for 18days is currently indicating 49.47, where as 50DMA is at 28021.66 and gold is trading above the same and getting support at 27956 and below could see a test of 27827 level, And resistance is now likely to be seen at 28216, a move above could see prices testing 28347.

Trading Ideas:

Gold trading range for the day is 27827-28347.

Gold dropped as the dollar rallied versus the euro on renewed fears of credit downgrades in major European economies

Investors is looking to a meeting of euro zone finance ministers for approval of the debt-laden bailout.

SPDR gold trust holdings dropped by 0.39 tonnes to 1278.26 tonnes