Gold remained to trade on a weak note, as it slightly breached below the weekly swing low.

The yellow metal was not capable to break the neckline of head and shoulders model at $900 and fell down, hinting that the first conservative target of $845 is on the right track.

The weekly momentum oscillator maintains with a downbeat crossover of the moving average and is close to give a crosswalk under the zero line.

The oscillator on the every day charts is dealing below the zero line. It has yet again given a bearish crossover of the moving average, in support of the bearish preconception.

Precious metals extended the loss on Friday on Comex as dollar strengthened sharply against Euro after the comment from ECB president gave a hint they might cut interest rate by quarter basis points led to correction in precious metals.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings fell to 1,105.98 tonnes as of April 17, down 13.45 tonnes or 1.2 percent from the previous day. It was the biggest one-day decline since Oct. 3.

The dollar neared a one-month high against the euro with the single currency under selling pressure due to uncertainty over what policy steps the European Central Bank will take next.

SBI Funds, a leading fund house of the country, has finally launched ‘SBI Gold Exchange Traded Scheme (SBI GETS) in the Indian market.

The investment objective of the fund is to seek and provide returns that closely correspond to returns provided by price of gold through investment in physical Gold.

According to official release, the scheme will invest 90%-100% in gold and gold bullion with medium to high risk profile and 0-10% in debt and money market instruments, with low risk profile.

In today’s session, gold futures turned lower after government data showed U.S. consumer prices unexpected fell during the last month, and posted their first 12-month fall since 1955, denting the metal's appeal as an inflation hedge.

Gold prices fell by Rs 80 in the bullion market on Wednesday because of profit booking amid strong stock markets.

The purchasing for the present marriage season and an improved curve in London bullion market failed to improve prices and prices chop down after traders and stockists indulged in profit booking at advanced levels.

In the opinion of the World Gold Council (WCG) Vice-President, K Shivaram, gold is one of the safest ways to secure savings, more so in the current murky economic scenario. Gold is ideally the best investment alternative because, the equity market crash notwithstanding, it still managed to give over 28 percent returns of late!

Noting that the value of gold has never plunged to unexpected lows, Shivaram said that the recent slump in gold prices is transitory. He expects the gold prices to soar as its supply from the mines is dropping, and countries like China and Russia are adding to their quantum of gold reserves.

Gold traded in jerky session on Tuesday as traders backed away from the safe investment amid anticipation that the financial system can return to normal.

In the international spot market, Gold belled the day at $887.50. During the session, it gained steam as worse than expected retail sales caused the equity markets to fall and gold rapidly rallied, touching an intraday high of $893.

Gold typically moves opposite the US currency owing to its hedge value. The dollar remained choppy as compared to other majors on Tuesday, giving back early gains.