Gold eased slightly as the U. S. dollar rose and the ECB left interest rates unchanged, maintaining the parameters of its 1.74 trillion euro ($1.95 trillion) asset buying scheme. The precious metal was boosted in last few sessions after subdued U. S. inflation numbers for September dampened expectations that the Federal Reserve could raise interest rates at its December meeting. But expectations for a December rate hike remain high. Markets are currently pricing in around a 64% chance of a December rate hike. New York Fed President William Dudley said the U. S. central bank will likely raise interest rates later this year if the economy remains on its current trajectory. India's overseas purchases of gold likely hit a nine-month high in October, as a flip in domestic prices to a premium prompted banks and refiners to resume imports ahead of the festival season, industry officials told. While higher purchases could widen India's trade deficit given bullion accounts for a major chunk of its imports, they would underpin global gold prices that have come off 7 percent from two-year highs hit in July as expectations of a U. S. interest rate hike by year-end strengthened the dollar. Last month, dealers offered gold at $32 an ounce below the official domestic price that include a 10 percent import tax - down from a record $100 discount in July - amid continued bleak demand and smuggling. But now they are charging a $2 premium ahead of a seasonal pickup in consumption. Technically market is under short covering as market has witnessed drop in open interest by -1.6% to settled at 7642, now Gold is getting support at 29839 and below same could see a test of 29769 level, And resistance is now likely to be seen at 30021, a move above could see prices testing 30133.

Trading Ideas:

Gold trading range for the day is 29769-30133.

Gold eased slightly as dollar rose and ECB left interest rates unchanged, maintaining the parameters of its 1.74 trillion euro asset buying scheme

Fed’s Dudley said the U. S. central bank will likely raise interest rates later this year if the economy remains on its current trajectory.

India's gold imports in the first nine months of 2016 are estimated to have slumped 59 percent from a year ago to 268.9 tonnes.