Gold traded in the tight range and settled at 29928, sentiment remain weak after comments by Mario Monti curbed risk appetite, lending support to the US dollar. In an interview with German magazine Der Spiegel, Monti said tensions within the euro zone" bear the traits of a psychological dissolution of Europe," and added that Europe "must work hard to contain it." The comments came after the ECB indicated Thursday that it may restart its bond buying program, to help lower Spanish and Italian borrowing costs. Risk appetite remained supported following data showing that the US economy added 163k jobs in July, the biggest increase since February and outstripping expectations for an increase of 100k. However, the US unemployment rate unexpectedly ticked up to 8.3%, from 8.2% in the preceding month, keeping alive speculation over the possibility of further monetary stimulus from the Fed. Gold and the dollar trade inversely, and talk the Fed is considering more easing can weaken the greenback and drive investors to buy the precious metal. Physical and investment gold demand was mixed. Gold shipments from Hong Kong to mainland China, which is challenging India to become the world's biggest gold market, fell 10% in June from the previous month. Now technically market is getting support at 29862 and below could see a test of 29796 level, And resistance is now likely to be seen at 29999, a move above could see prices testing 30070.

Trading Ideas:

Gold trading range for the day is 29796-30070.

Gold ended with gains on gains in U.S. equities and crude oil

Muted moves in U.S. dollar give gold little direction after last week's swings

Inflows into Gold ETF also picked up after a soft July, with data from the largest showing its holdings up 3tns so far this month.