Gold gained as investors sought its safe-haven status after the dollar and equity markets were hit by a slew of weak manufacturing data that indicated stagnant global economic growth. While Fed officials stressed that no change in the stimulus program was likely for months at the earliest, investors are anxious about that possibility. The Fed's easy money policy is widely credited with fuelling massive gains in stocks this year and previously in gold. A euro zone purchasing managers' index showed that while the slump in business activity eased slightly in May, it pointed to a further contraction in the second quarter. The flash HSBC purchasing managers' survey showed Chinese factory activity shrank in May for the first time in seven months. Weaker economic data from China, which raises concerns over whether the country can sustain an economic revival this year, come at a time physical gold demand in Asia is normalising. Demand was now tapering off as jewellers had largely replenished their stocks and retail investors satisfied their needs. Concerns over the timing of a wind-down in the U. S. stimulus programme also lingered even as Federal Reserve Chairman Ben Bernanke said the economy had to show more signs of progress before monetary easing could be halted. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.15 percent to four-year lows of 1018.57 tonnes on Thursday. Now technically market is trading in the range as RSI for 18days is currently indicating 42.4, where as 50DMA is at 27441.92 and gold is trading below the same and getting support at 26147 and below could see a test of 25853 level, And resistance is now likely to be seen at 26607, a move above could see prices testing 26773.

Trading Ideas:

Gold trading range for the day is 25853-26773.

Gold gained as investors sought its safe-haven status after the dollar hit by a slew of weak manufacturing data

Federal Reserve Chairman Ben Bernanke said the economy had to show more signs of progress before monetary easing could be halted.

SPDR Gold Trust, said its holdings fell 0.15 percent to four-year lows of 1018.57 tonnes on Thursday.