Gold settled down -0.15% at 28688 rebound from the day's low as support seen after some disappointing U. S. retail sales data for July with China's industrial production also growing at a slower pace in July. The soft retail sales data also discounted any possiblity of an earlier than expected move by the U. S. Federal Reserve to hike rates. Investors were also focused on the developments in Ukraine, with a convoy of 260 Russian trucks carrying humanitarian aid headed for Ukraine, which is likely to be denied entry by the Ukrainian government. Meanwhile, the developments in Gaza were also being closely watched, even as the three-day truce in the Gaza Strip ends later today. On Tuesday, gold futures ended a tad higher with weakness in European equity markets on the back of some soft German economic data contributing to some slackness. Meanwhile Policy uncertainty is keeping Indian gold demand subdued and could mean that August, traditionally the strongest month for sales, does not live up to its potential. In July, the government said it will not taper the import tax on gold, as the market had been expecting. India was was recently overtaken by China as the world's largest consumer of the yellow metal. The government has been increasingly aggressive in taxing gold to help plug a gap in its current account. Over the past two years, the government has raised the import tax on gold to 10% from 2% and said 20% of imports must be re-exported, known as the 80:20 rule. Technically market is under long liquidation and getting support at 28600 and below same could see a test of 28512 level, And resistance is now likely to be seen at 28763, a move above could see prices testing 28838.

Trading Ideas:

Gold trading range for the day is 28512-28838.

Gold prices ended with small losses as prices recovered from lows after soft retail sales pointed to some loss of momentum in the U. S. economy

Data showed U. S. retail sales unexpectedly stalled in July, pointing to some loss of momentum in the economy early in the third quarter.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.26 tonnes to 795.60 tonnes on Wednesday.