Gold yesterday settled up 0.6% at 27404 rose on Thursday after official data in the US revealed that more individuals sought out jobless assistance last week than expected, which weakened the dollar. Disappointing US indicators tend to dampen expectations that dollar-weakening monetary stimulus programs such as the Fed's monthly USD85 billion bond-buying program will end soon. Now Investors fear that strong US economic numbers would prompt the Federal Reserve to start tapering its stimulus measures sooner rather than later. Also China's gold demand could hit a record 1,000 tonnes this year, the World Gold Council said on Thursday, which means it would overtake India as the world's biggest bullion consumer. Gold premiums in India jumped to $20 an ounce over London spot prices on Thursday due to short supplies even as traders, looking to stock up for festivals, waited for prices to fall further from their highest level in more than a month. Also Gold mining companies are expected to cut their gold hedging position by 20 tonnes on a net basis in 2013 even though the price of bullion has fallen sharply. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.26 percent to 927.36 tonnes on Thursday. Goldcorp Inc, the world's largest gold miner by market capitalisation, posted weaker-than-expected second quarter results on Thursday, hit by a sharp drop in the gold price and a $2 billion non-cash impairment charge. Technically market is under short covering and now Gold is getting support at 27128 and below same could see a test of 26852 level, And resistance is now likely to be seen at 27564, a move above could see prices testing 27724.

Trading Ideas:

Gold trading range for the day is 26852-27724.

Gold gained on the back of a broadly weaker dollar, following the release of mixed U.S. data on jobless claims and durable goods orders.

The mixed data dampened expectations that Fed will start to unwind its USD85 billion-a-month asset purchase program later this year.

The Labor Department said the number of individuals filing for initial jobless benefits last week increased by 7,000