Gold settled down -0.29% at 26424 shade lower while traded in the range ahead of the two-day FOMC meet next week, even as the dollar trended lower. Drop seen after strong performances in global equity markets also impacted gold. China's Shanghai Composite Index jumped 2.9 percent, after a slew of support measures by Beijing. The measures included tax exemption on dividends and a move to introduce a market-wide circuit breaker system to stabilize the market also helped investors shrug off weak data underlying weakness in the world's second-largest economy. Investors also weighed some disappointing economic data, as China revised its GDP growth rate for 2015 downward from 7.4 percent to 7.3 percent. German exports expanded more-than-estimated in July, while the eurozone economy grew more than initially estimated in the Q2. Gold trading with negative node since Friday after soft US jobs data provided little cues to a likely interest rate hike in Sept by the Fed, even as the dollar trended lower. Gold prices in India were back to discount of 6$ to global benchmark prices, for the first time in almost two months period. The gold demand in the country witnessed significant drop following fears of weaker monsoon. Gold dealers were seen offering discounts starting from $2 upto $6 per ounce during this week. It must be noted that plunge in gold demand had taken gold prices to a discount of up to $15 during the month of July this year. Domestic gold prices in India had touched four-year lows during late July, tracking global gold price meltdown, but have managed to recover almost 8% since then. Technically market is getting support at 26368 and below same could see a test of 26311 level, And resistance is now likely to be seen at 26500, a move above could see prices testing 26575.

Trading Ideas:

Gold trading range for the day is 26311-26575.

Gold eased as stock markets firmed and the dollar steadied, and after U.S. payrolls data failed to provide clarity on the timing of a Federal Reserve rate hike.

Gold has failed to attract strong investor interest as a safe haven despite the recent weakness in stocks due to worries over the Chinese economy

Bullion traders said uncertainty over the timing of a hike will keep gold under pressure until the Fed meets on Sept. 16-17.