Gold on MCX settled up 0.55% at 28111 shrugging off data showing rising U. S. job numbers, with an expected rise in interest rates had already been priced in. U. S. employers boosted hiring in November, pushing down the unemployment rate to a more than nine-year low of 4.6 percent and increasing the likelihood that the Federal Reserve will raise interest rates this month. Several Federal Reserve policymakers have since expressed confidence in the U. S. economy and signalled a possible near-term interest rate hike. Holdings of the largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 1.54 percent to 870.22 tonnes on Thursday. Holdings have fallen over 6 percent last month. Gold premiums in China held near three-year highs amid limited supply of the precious metal with traders saying Beijing was restricting imports, while prices in India swung to a discount as a severe cash crunch dampened appetite. The import curbs may be part of China's efforts to limit outflows of the yuan after the currency's slide to its weakest in more than eight years. China allows only 15 banks to import gold, including three foreign lenders. Gold was sold in China at about $24 an ounce above the international spot benchmark. Premiums went as high as $30 last week, the most since January 2014, according to data. Assets in exchange-traded funds backed by bullion declined for a 14th day, the longest run since March 2015, amid speculation the Federal Reserve will raise U. S. interest rates at least twice in the next year. Technically market is under fresh buying as market has witnessed gain in open interest by 1.48% to settled at 6168, now Gold is getting support at 27986 and below same could see a test of 27860 level, And resistance is now likely to be seen at 28219, a move above could see prices testing 28326.

Trading Ideas:

Gold trading range for the day is 27860-28326.

Gold edged higher shrugging off data showing rising U. S. job numbers, with an expected rise in interest rates had already been priced in.

Several Federal Reserve policymakers have since expressed confidence in the U. S. economy and signalled a possible near-term interest rate hike.

Gold premiums in China held near three-year highs amid limited supply of the precious metal with traders saying Beijing was restricting imports.