Gold closed flat after the volatile session where by we have seen gold testing a fresh high of 32105 and dropped on profit booking till 31727 at lower as profit takers hit after Germany’s constitutional court approved the ratification of the euro zone’s bailout fund and amid hopes of further easing from the US Germany's Federal Constitutional Court rejected pleas to block the ratification of Europe's EUR500 billion permanent rescue fund, clearing the way for Germany’s president to ratify the ESM under certain conditions and allowing the ECB’s bond purchasing program to proceed. However, the judges attached various conditions to the ESM, saying the country’s liability to the fund must not exceed EUR190 billion without the approval of the lower house of parliament and said that both houses of parliament must be kept informed about decisions relating to the ESM. Meanwhile, markets continued to eye the outcome of the Fed’s policy meeting, amid fresh speculation that the US central bank may announce QE3 to boost growth. Market expectations of a QE3 announcement this week increased after last Friday’s weaker than expected jobs report and following a speech from Bernanke. Now technically market is getting support at 31696 and below could see a test of 31523 level, And resistance is now likely to be seen at 32074, a move above could see prices testing 32279.

Trading Ideas:

Gold trading range for the day is 31523-32279.

Gold turned lower as investors took profits after ahead of a closely watched policy statement from the U.S. FED

Germany's Constitutional Court gave a green light to ratify the euro zone's new bailout Fund

SPDR golod trust holdings dropped by 3.72 tonnes to 1289.42 tonnes