Gold on MCX settled down -0.64% at 28446 amid increasing confidence the Federal Reserve will raise interest rates at its upcoming policy meeting next week. The ADP National Employment Report showed its biggest increase in over a year in February, suggesting the U.S. economy remains on solid ground. The number of Americans filing for unemployment benefits last week rebounded from a near 44-year low, but the labour market continues to tighten amid a sharp drop in job cuts in February. Markets dramatically adjusted expectations for U.S. interest rate hikes this year following hawkish comments from several top Fed officials last week. Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.32 percent on Thursday. The European Central Bank pledged on Thursday to keep its aggressive stimulus policy in place at least until the end of the year, but signaled a diminishing urgency for more policy action, enough to send the euro and bond yields higher. Investors are waiting for February non-farm payrolls data on Friday as a barometer of the U.S. economy after Federal Reserve Chair Janet Yellen said last week the central bank was poised to lift rates provided jobs and inflation data held up. Technically market is under long liquidation as market has witnessed drop in open interest by -0.82% to settled at 6074 while prices down -183 rupees, now Gold is getting support at 28367 and below same could see a test of 28287 level, And resistance is now likely to be seen at 28562, a move above could see prices testing 28677.

Trading Ideas:

Gold trading range for the day is 28287-28677.

Gold dropped amid increasing confidence the Federal Reserve will raise interest rates at its upcoming policy meeting next week.

The ADP National Employment Report showed its biggest increase in over a year in February, suggesting the U.S. economy remains on solid ground.

Holdings of the SPDR Gold Trust (GLD), the world's largest gold-backed exchange-traded fund, fell 0.32 percent on Thursday