Gold settled down -1.65% at 27747 end at a two-month low giving rise to fears of an early tightening of the monetary policy after a slew of upbeat economic data out of the U.S. with initial claims for unemployment benefits declining more than expected and existing home sales also rising beyond expectations. Gold was under pressure after minutes of the Fed's most recent policy meeting hinted at fierce debate over when to raise U.S. interest rates. Some members preferred hike in rates sooner than forecast thanks to improvements in the job market and risks associated with ultra-easy monetary policy. A batch of upbeat economic data from the U.S. earlier today showed existing home sales unexpectedly rose to a ten-month high in July, and a Labor Department report indicated jobless claims to have dropped more than expected in the week ended August 16. Meanwhile, a Conference Board report showed a bigger than expected increase of its index of leading U.S. economic indicators in July, suggesting the economy is gaining traction. Meanwhile Holdings of SPDR Gold Trust, moved higher to 800.08 tons on Thursday, from its previous close of 799.19 tons on Wednesday. Also Indian gold premiums is expected to average $3-$4 an ounce over London prices this year, roughly half what they were last year, because of continuing restrictions on imports that will soften demand. Struggling with a high trade deficit, India raised its gold import duty to a record 10% last year and made it mandatory to export a fifth of all bullion imports. Technically market is under fresh selling and getting support at 27581 and below same could see a test of 27414 level, And resistance is now likely to be seen at 28038, a move above could see prices testing 28328.

Trading Ideas:

Gold trading range for the day is 27414-28328.

Gold dropped as fears about an early interest rate hike by the U.S. Federal Reserve sparked a technical selloff after prices broke below a key support level.

Data showed U.S. home resales raced to a 10-month high in July and the number of Americans filing new claims for jobless benefits fell last week

Geopolitical tensions in Ukraine and Middle East were being watched for any escalation in violence that could prompt safe-haven bids for gold