Gold ended higher after Japan's economy minister warned that further depreciation of the yen could harm the country's economy. The Bank of Japan has enacted massive monetary easing measures to steer the country away from deflationary decline and more towards growth, with the yen plunging to lows against the dollar not seen since 2008. Gold prices dropped sharply early in the session as investors continued to sell the precious metal amid speculation over an earlier-than-expected end to the Federal Reserve's quantitative easing program. Moves in the gold price this year have largely tracked shifting expectations as to whether the U. S. central bank would end its bond-buying program sooner-than-expected. Gold traders are now looking ahead to Wednesday's Federal Reserve minutes, as well as testimony on the economic outlook and monetary policy by Fed Chairman Ben Bernanke. India will take more steps if necessary to curb gold imports, Finance Minister P. Chidambaram said, after the country's overseas purchases of gold and silver shot up 138 percent in April. The spike in gold imports has increased pressure on the country's trade and current account deficits, and limited the scope for monetary easing by the RBI, despite a recent slowdown in inflation. Meanwhile, gold traders and jewellers in India, were scrambling for supplies after the central bank restricted imports on a consignment basis, triggering a surge in premiums. Now technically market is trading in the range as RSI for 18days is currently indicating 36.76, where as 50DMA is at 27684.12 and gold is trading below the same and getting support at 25528 and below could see a test of 24967 level, And resistance is now likely to be seen at 26494, a move above could see prices testing 26899.

Trading Ideas:

Gold trading range for the day is 24967-26899.

Gold ende higher after Japan's economy minister warned that further depreciation of the yen could harm the country's economy

India will take more steps if necessary to curb gold imports, Finance Minister P. Chidambaram said.

SPDR Gold Trust, said its holdings stood at 1,031.50 tonnes on Monday, the lowest in more than four years.