Gold on MCX settled down -1.18% at 28385 as the metal’s safe-haven appeal was dampened amid a rally in global stock markets. Investors snapped up equities amid an improved corporate earnings outlook, reducing demand for safe-haven assets such as gold and government bonds. New U. S. single-family home sales fell to a 10-month low in December after three straight months of solid gains, but the housing market recovery remains intact as a tightening labor market boosts wage growth. Fears of a resurgence of euro zone inflation are exaggerated, so winding down from stimulus has not been discussed, a top European Central Bank policymaker said, even as the bank's top hawks suggested that the exit may be close. Physical gold demand fell 20 percent last year to its lowest since 2009, GFMS analysts at Thomson Reuters said in a report, as a rebound in prices blunted appetite for the metal. China's net gold imports via main conduit Hong Kong rose 2.7 percent in December over the previous month, data showed. Switzerland's gold exports to China surged to their highest on record in December at 158 tonnes, data from the Swiss customs bureau showed, nearly triple the level of the same month a year earlier. Also undermining sentiment was weak physical demand in India due to higher prices, while Chinese demand is weaker ahead of the Lunar New Year holiday. Technically market is under long liquidation as market has witnessed drop in open interest by -12.65% to settled at 6264 while prices down -340 rupees, now Gold is getting support at 28278 and below same could see a test of 28171 level, And resistance is now likely to be seen at 28571, a move above could see prices testing 28757.

Trading Ideas

# Gold trading range for the day is 28171-28757.

# Gold prices fell as the metal’s safe-haven appeal was dampened amid a rally in global stock markets.

# Investors snapped up equities amid an improved corporate earnings outlook, reducing demand for safe-haven assets such as gold and government bonds.

# SPDR gold trust holdings dropped by 0.63% i. e. 5.04 tonnes to 799.07 tonnes from 804.11 tonnes.