Gold traded under pressure and settled down by -0.23% at 31433 as a strong dollar combined with euro zone fears and weak German numbers to pressure the precious metal lower on the session. The euro and created pressure on gold as dollar gained as Euro lost ground following a report showing that Germany's Ifo business confidence index deteriorated to the lowest level since March 2010 this month, amid ongoing concerns over euro zone's debt crisis. Meanwhile, uncertainty over whether Spain will request a full scale sovereign bailout weighed. In addition, ratings agency Moody's is expected to complete a ratings review on Spain later this week. Greece also added to the risk-off trade environment, after German magazine Der Spiegel reported over the weekend that the country faces a EUR20 billion budget shortfall, almost twice as much as previously thought. Losses were limited as the precious metal drew support from expectations central banks around the world will continue to introduce monetary easing measures to stimulate the global economy. The precious metal has rallied on past monetary stimulus measures. Investors tend to flock to gold on fears that excess liquidity would erode the value of fiat currencies and spark inflation. Now technically market is getting support at 31290 and below could see a test of 31147 level, And resistance is now likely to be seen at 31558, a move above could see prices testing 31683.

Trading Ideas:

Gold trading range for the day is 31147-31683.

Gold eased as dollar rose and assets seen as higher risk, like stocks, euro and other commodities like crude oil, retreated.

Demand in India picked up, as a drop in local gold prices to a three-week low prompted a wave of buying

SPDR Gold Trust said its holdings hit a record high of 1,326.808 tonnes by Sept. 24.