Gold fell on Saturday and settled at 31506 but seem to be getting pressure as investors encouraged by recent stimulus measures by central banks pushed prices to the highest level in nearly seven months in the previous session. But market participants remain bullish on the precious metal, which tends to benefit from easy monetary policy. Investors piled into gold after the US Fed announced a fresh round of QE earlier this month. Speculators raised their net long positions in US gold futures and options to 178,426 contracts in the week ended Sept. 18, the highest level in nearly 7months. Holdings in the SPDR Gold Trust, had climbed to 1,317.762 tonnes by Sept 21, its highest level since July 2010. In Europe, Spain is considering freezing pensions and speeding up a planned rise in the retirement age as it races to cut spending and meet conditions of an expected international sovereign aid package, sources with knowledge of the matter said. EU paymaster Germany said on Friday that Spain does not need a European bailout, dousing financial market expectations that Madrid will gain early relief from ECB bond-buying. Now technically market is getting support at 31463 and below could see a test of 31421 level, And resistance is now likely to be seen at 31540, a move above could see prices testing 31575.

Trading Ideas:

Gold trading range for the day is 31421-31575.

Gold ended lower due to strong rupee downside was limited on talk Spain is moving closer to seeking rescue financing

Reports that Spain is drafting economic reforms necessary to gain bailout aid boost confidence

SPDR gold trust holdings gained by 9.35 tonnes to 1317.76 tonnes