Gold surged as a surprisingly weak U.S. payrolls report added to fears about a global economic slowdown and fuelled talk of further U.S. monetary easing. The precious metal fell in early trading, then rebounded from its session low as funds piled into gold for protection against economic uncertainty after the U.S. Technical buying also helped as the metal is setting up for a bullish triple-bottom chart pattern after gold held key support near 29000, which it held for most of this year. Gold's rally was reminiscent of its rise earlier this year when the Federal Reserve said it would keep interest rates at zero for the next several years and indicated a new stimulus program was possible to reinvigorate economic growth. Gold gained 15 percent earlier this year after the U.S. Federal Reserve said in January it would keep interest rates near zero until at least late 2014 and could introduce a fresh round of asset-purchase program known as quantitative easing. Employment is a key consideration for monetary policy decisions at the reserve bank, and many gold-market participants have been hoping that weakness in the labor market would usher in another round of quantitative easing or other stimulus measures from the Federal Reserve. Now technically market is trading in the range as RSI for 18days is currently indicating 70.37, where as 50DMA is at 29157.6 and gold is trading above the same and getting support at 30026 and below could see a test of 29953 level, And resistance is now likely to be seen at 30164, a move above could see prices testing 30229.

Trading Ideas:

Gold trading range for the day is 29953-30229.

Gold surged as a surprisingly weak U.S. payrolls report added to fears about a global economic slowdown.

Egan-Jones downgrades Italy to B+ from BB, outlook negative

SPDR gold trust holdings rose by 3.62 tonnes to 1273.88 tonnes