Gold yesterday settled up 0.17% at 27580 modestly gain as traders in the region digested a spate of marquee economic data points from the U.S. and China that were published in recent days. Gold fell around 2 percent on Friday, its biggest one-day drop in over three weeks, as funds dumped bullion after resilient U.S. jobs data suggested the Federal Reserve could begin to scale back its monetary stimulus later this year. The metal posted its first weekly drop in two weeks after Friday's selloff more than erased gains earlier this week. A sharp dollar drop and strong physical demand had lifted gold above $1,400 an ounce for most of this week. The US added 175,000 jobs last month after adding just 149,000 in April, reducing hopes of prolonged stimulus, and that weighed down on gold's inflation-hedge appeal. While India, continued efforts to curb gold imports on Friday, with the Reserve Bank of India extending restrictions on loans against security of gold coins per customer to all co-operative banks. This came after India announced another increase in its import duty for gold this week. Also SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.06 percent to 1,007.14 tonnes on Friday. Technically market is under fresh buying as market has witnessed gain in open interest by 0.18% to settled at 14971 while prices up 48 rupee, now Gold is getting support at 27544 and below same could see a test of 27507 level, And resistance is now likely to be seen at 27605, a move above could see prices testing 27629.

Trading Ideas:

Gold trading range for the day is 27507-27629.

Gold seen under pressure as funds dumped bullion after resilient U.S. jobs data suggested the FED could begin to scale back its monetary stimulus.

The US added 175,000 jobs last month after adding just 149,000 in April, reducing hopes of prolonged stimulus and weighed down on gold's appeal.

The RBI extending restrictions on loans against security of gold coins per customer to all co-operative banks.