Gold settled down -1.08% at 31540 as investors considered signs that the Fed will curb monetary stimulus this month, while Obama attempts to get approval to attack Syria. Gold prices gave up Friday's gains after investors looked past a weak jobs report that had initially quashed expectations that Federal Reserve will announce plans to taper stimulus programs this month. Stimulus programs such as the Fed's USD85 billion in monthly asset purchases weaken the dollar to spur recovery, which makes gold an attractive hedge as long as they remain in place. The U. S. economy added 169,000 jobs in August, the Bureau of Labor Statistics reported Friday, less than market calls for a 180,000 increase. July 's figure was revised down to 104,000 from 162,000, while June's figure was revised down to 172,000 from 188,000. The private sector added 152,000 jobs in August, well beneath expectations for a 180,000 rise. The U. S. unemployment rate fell to 7.3% in August from 7.4% in July, as more people left the workforce. Analysts were expecting the unemployment rate to remain unchanged last month. The data initially fueled sentiments that the Federal Reserve may hold off announcing plans to begin winding down its USD85 billion in monthly bond purchases at its Sept. 17-18 policy meeting, though by Monday, many investors backtracked on that opinion, betting that the Fed remains on course to begin scaling back its asset purchases this month even if just by a little. Fed officials have said they will pay close attention to data when deciding the fate of stimulus programs, and despite a soft August jobs report, the U. S. economy continues to recover. Technically market is under fresh selling as market has witnessed gain in open interest by 0.94% to settled at 8491 while prices down -344 rupee, now Gold is getting support at 31373 and below same could see a test of 31205 level, And resistance is now likely to be seen at 31838, a move above could see prices testing 32135.

Trading Ideas:

Gold trading range for the day is 31205-32135.

Gold dropped on expectations the Federal Reserve is still likely to press on with some tapering of monetary stimulus.

Fed's Evans says FOMC will probably taper QE "later this year"; wants to see 3Q economic "traction" before QE taper.

US President Obama refuses to say what he would do if the US Congress fails to approve military strikes in Syria.