Gold traded in the range and settled down by -0.33% at 31913 recovering from the day's low of 31831 as support seen as better than expected US data helped support the commodity complex. Prices came off the lowest levels of the session after the US Dept of Labor said the number of individuals filing for initial jobless benefits in the week ending Sept 15 fell by 3k to a seasonally adjusted 382k vs 375$. Jobless claims have remained below 400k, a level historically associated with an improving labor market, in 45 of the past 47 weeks, though lately claims have been pushing higher from the 350k associated with above average job growth. The disappointing data underlined concerns over the weak US labor market. Gold prices rallied earlier after the Fed said last week it will purchase USD40 billion of mortgage backed securities every month until the labor market improves. Support can be seen in near term as Gold demand in India, the world’s biggest consumer, saw a modest pick-up as price correction from last week’s record high lured buyers, although some were waiting for a much steeper fall. But as India celebrates the Ganesh Chaturthi this week, which will be followed by Dussehra & Diwali. Now technically market is getting support at 31829 and below could see a test of 31746 level, And resistance is now likely to be seen at 31998, a move above could see prices testing 32084.

Trading Ideas:

Gold trading range for the day is 31746-32084.

Gold dropped as a stronger dollar and weaker oil and stock markets prompted some investors to cash in gains

Concerned over rising gold imports, RBI is planning to come out with products to give options to investors.

SPDR gold trust holdings gained by 3.01 tonnes to 1308.41 tonnes