Gold on MCX settled up 0.39% at 29901 as the dollar weakened amid uncertainty around the timing of a U. S. interest rate increase. U. S. inflation, which has under-run the Federal Reserve's 2-percent target for years, is "likely firming," Dallas Fed President Robert Kaplan said, adding that some removal of monetary accommodation will be appropriate. U. S. consumer prices showed a moderation in underlying inflation, prompted markets to trim bets on a December Federal Reserve rate hike. Fed fund futures imply around a 65 percent probability of the Federal Reserve raising interest rates by December, down from 70 percent before the CPI data. Gold prices in India swung to a premium for the first time in nine months as jewellers and dealers in the world's No. 2 consumer of the metal ramped up purchases ahead of major festivals. Dealers were charging up to $2 an ounce over official domestic prices, the first time premiums have been seen since mid- January. Gold importers have traditionally charged premiums to mitigate risks they take due to currency and price fluctuations. A European Central Bank's policy meeting on Thursday will also be monitored by markets. Fed Vice Chair Stanley Fischer said the U. S. central bank is "very close" to its employment and inflation targets, while Boston Fed President Eric Rosengren said the current levels of jobs and inflation support the case for a rate increase soon. Technically market is under short covering as market has witnessed drop in open interest by -2.89% to settled at 7766 while prices up 115 rupee, now Gold is getting support at 29773 and below same could see a test of 29646 level, And resistance is now likely to be seen at 30011, a move above could see prices testing
30122.

Trading Ideas:

Gold trading range for the day is 29646-30122.

Gold rose as the dollar weakened amid uncertainty around the timing of a U. S. interest rate increase.

U. S. inflation, which has under-run the Federal Reserve's 2-percent target for years, is "likely firming," Dallas Fed President Robert Kaplan said.

Gold prices in India swung to a premium for the first time in nine months as jewellers and dealers ramped up purchases ahead of major festivals.