Gold settled down -1.33% at 28632 slipped as a modest rebound in equities dampened safe-haven interest in the metal and physical purchases in top buyer Asia were quiet. On Monday, gold had rallied after disappointing manufacturing data from the United States and China pummelled Wall Street equities, while jitters about emerging markets bolstered an investor flight to safety. A rebound in U.S. stocks also dampened gold's safe-haven appeal. The S&P 500 index rose nearly 1 percent on sturdy corporate results, as the market fought to regain its footing following its largest selloff in months a day earlier. Bullion has gained around 4 percent so far this year, after a 28 percent drop in 2013, as slowing growth in China and capital outflows from emerging nations hit equity markets. On Tuesday, however, the dollar regained ground on sentiments that harsh winter weather may have played a role on the indicator's poor showing, which wiped out gold's gains. Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to scale back stimulus. The central bank tapered its monthly asset purchase program by another USD10 billion to USD65 billion a month last week, citing improvements in the labor market. Also SPDR Gold Trust, said its holdings rose 3.89 tonnes to 797.05 tonnes on Tuesday. Physical demand has been weak as key buyer China is closed for the Lunar New Year holiday. Technically market is under long liquidation as market has witnessed drop in open interest by -0.1% to settled at 9631 while prices down -385 rupee, now Gold is getting support at 28492 and below same could see a test of 28352 level, And resistance is now likely to be seen at 28886, a move above could see prices testing 29140.

Trading Ideas:

Gold trading range for the day is 28352-29140.

Gold dipped as the dollar steadied and investors assessed that weak U.S. data would not derail the world's largest economy from its recovery path.

With the recent data and emerging market troubles, SPDR Gold Trust, has not seen any outflows in more than a week.

SPDR gold trust holding gained by 3.89 tonnes i.e. 0.49% to 797.05 tonnes from 793.16 tonnes.