Gold settled up 0.1% at 27676 on some upbeat economic data from China with the country's gross domestic product rising more than expected in the second quarter and U.S. producer price inflation rising more than expected. Meanwhile, U.S. Federal Reserve Chair Janet Yellen continued her testimony before the House Financial Services Committee, rejecting a GOP bill that would require the Fed to follow a mathematical rule for when to raise or lower interest rates. Yellen said it would be a "grave mistake" for Fed to commit to follow a rigid metric. On Tuesday, Yellen indicated the Fed may raise interest rates sooner than expected if the recovery in the U.S. labor market is sustained. The Federal Reserve's Beige Book report showed economic activity improved along with the labor market across the United States. In economic news, a Labor Department report showed U.S. producer prices to have increased more than expected in June, with energy prices registering a significant rebound. Meanwhile, China's GDP growth for the second quarter at 7.5 percent was faster than that forecast by market. On Tuesday, gold futures dropped on some mixed economic data from the U.S. and remarks from U.S. Federal Reserve Chair Janet Yellen on rate hikes. Now Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 808.73 tons on Wednesday, from its previous close of 800.05 tons. Technically market is under fresh buying as market has witnessed gain in open interest by 0.21% to settled at 8449 while prices up 28 rupee, now Gold is getting support at 27595 and below same could see a test of 27513 level, And resistance is now likely to be seen at 27747, a move above could see prices testing 27817.

Trading Ideas:

Gold trading range for the day is 27513-27817.

Gold rebounded but a strong U.S. economic outlook and fears that Fed could raise U.S. interest rates limited gains for the safe haven.

Data showed U.S. manufacturing output rose at its fastest pace in more than two years in the second quarter

In a sign of waning investor sentiment, SPDR Gold Trust said its holdings fell 2.7 tonnes to 806.03 tonnes on Wednesday.