Gold yesterday traded in the range and settled lower in thin trade but stayed within sight of its highest in nearly six months ahead of the ECB meeting, which could announce new policies to help contain the euro zone's debt crisis. On domestic side Gold settled flat up with a marginal gain of Rs. 19.00 to settle at 31468 as rupee dipped to its lowest level in three weeks weighed down by losses in domestic stocks and the euro, on skepticism about the ECB's ability to unveil a concrete plan to help debt-laden euro zone economies. Investors were nervous prior to the ECB's policy meeting at which President Draghi was expected to announce details of measures to help stabilize the region's sovereign debt markets. Meanwhile, gold traders also looked ahead to Friday's crucial US non-farm payrolls data, which will allow investors to gauge the strength of the labor market and the need for additional easing by the Fed. Bernanke indicated last week that the central bank will act as needed to strengthen the US economic recovery. Now technically market is in overbot as RSI for 18days is currently indicating 77.5, and getting support at 31416 and below could see a test of 31363 level, And resistance is now likely to be seen at 31532, a move above could see prices testing 31595.

Trading Ideas:

Gold trading range for the day is 31363-31595.

Gold dropped from highs as investors sat on the sidelines on the eve of the European Central Bank meeting.

Reports of ECB bond-buying plans boosted the euro and helped push down yields on Spanish and Italian bonds

India may raise an import duty for a third time this year to curb purchases and reduce a record current-account deficit.