Though gold futures broke above $1600 in late July, the metal is trapped in a range as it failed to hold above $1625 levels and on the lower side it is holding well above $1525 levels.

A break of this range may trigger fresh round of movement in the metal taking it either towards $1700 or below $1500 levels.

Today, the most-actively traded contract for December delivery, is up $2.60 at $1,618.7 a troy ounce on the Comex division of the New York Mercantile Exchange. Turnover in gold futures has been extremely low for the past three days, as some investors moved to the sidelines ahead of important monetary-policy decisions while others took time off for summer holidays.

Individual trades can have a larger impact on determining gold prices when trading volume is low, because there are fewer market participants to absorb large orders.

European stock markets opened firmer on Thursday, tracking gains in Asia after a clutch of China data pointed in the direction of more monetary-policy easing from that country.

Asia equities also surged today, as the data released showed that Price pressures abate in China as a weakening economy affects growth for industrial production and consumption, strengthening calls for Beijing to respond by further loosening its monetary policy.

Japan's central bank leaves interest rates and policy stance unchanged but reiterates its commitment to powerful monetary easing.

At the Multi Commodity Exchange, gold for delivery in October rose by nearly Rs 40 at Rs 29,930 per 10 grams. It may face a resistance near Rs 29970 today.

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