Gold yesterday settled up at 27906 climbed to its highest in nearly two weeks on soft US data and as holdings in the world's biggest gold exchange-traded fund rose for the first time in two months, but gains were limited amid ongoing speculation over how soon the Federal Reserve may start to pull back its asset purchase program. The precious metal is on track to post a loss of approximately 22% on the year amid concerns the Fed will start to unwind its stimulus program by the year's end. Comments by senior Fed officials, including the heads of the Federal Reserve Banks of Chicago and Dallas, indicated that the US central bank could begin to scale back its asset purchase program as early as next month if the economy continues to pick up. An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies. In the week ahead, investors will be closely watching US data on retail sales and consumer inflation, as well as reports from the housing and manufacturing sectors. Investors have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.2 percent to 911.13 tonnes on Friday - the first increase since June 10. Technically market is getting support at 27875 and below same could see a test of 27843 level, And resistance is now likely to be seen at 27939, a move above could see prices testing 27971.

Trading Ideas:

Gold trading range for the day is 27843-27971.

Gold seen supportive due to uncertainty over when the U. S. Federal Reserve will reduce its economic stimulus policy.

There was no consensus among Fed policymakers about the exact timing on when to end the program.

Government data showed U. S. wholesale inventories unexpectedly fell for a second straight month in June.