Gold on MCX settled down -0.01% at 29301 as renewed expectations of an increase in U.S. interest rates next month pushed the dollar higher, although political and economic uncertainties in Europe and the United States supported investor sentiment. The dollar strengthened after Federal Reserve members pointed to the potential for higher U.S. rates next month, making commodities priced in the currency more expensive for non-U.S. buyers.
San Francisco Fed President John Williams warned Tuesday that the global drop in interest rates since the financial crisis is likely to persist and will make it harder for central banks to keep world economies healthy. Switzerland's gold exports hit a 10-month low in January, data from the Swiss customs bureau showed on Tuesday, as shipments to China and Hong Kong fell to their lowest since April.
Also on the radar is U.S. President Donald Trump's address to Congress on Feb. 28, which analysts and traders hope will offer detail on infrastructure spending and tax cuts. Investor demand for gold can be seen in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, holdings of which have risen by more than 5 percent to 27.044 million ounces since Jan. 31.
Traders are focused on the release of minutes from the Fed's Jan. 30-Feb. 1 meeting, due on Wednesday. Technically market is under long liquidation as market has witnessed drop in open interest by -3.08% to settled at 6318 while prices down -2 rupees, now Gold is getting support at 29140 and below same could see a test of 28980 level, And resistance is now likely to be seen at 29395, a move above could see prices testing 29490.