Gold settled up 0.66% at 29159 rallying for a second consecutive day with a boost from renewed fund buying and equities' weakness after bullion posted its annual decline in 2013. Bullion's second day of sharp gains came as U. S. stocks eased on Friday, extending a broad decline in the new year with major indexes on track to end the week lower. "It is important to recognize that the potential signaling aspect of asset purchases depends on the broader economic and policy context. In particular, the [Fed's] decision to modestly reduce the pace of asset purchases at its December meeting did not indicate any diminution of its commitment to maintain a highly accommodative monetary policy for as long as needed," Bernanke said in prepared remarks of a speech he gave earlier Friday. Premiums on the Shanghai Gold Exchange showed that Chinese buying has picked up in recent days as global prices hovered around $1,200 near the end of 2013. Also boosting gold market sentiment were brisk sales of the U. S. Mint's new 2014-dated American Eagle gold coins on the first business day of the year, extending last year's strength boosted by gold prices' broad decline. A stronger U. S. dollar and heavy losses in crude oil prices last week could pressure the precious metal as more participants return this week following the recent holidays. Now Gold is getting support at 28914 and below same could see a test of 28669 level, And resistance is now likely to be seen at 29323, a move above could see prices testing 29487.

Trading Ideas:

Gold trading range for the day is 28669-29487.

Gold prices gained rallying for a second consecutive day with a boost from renewed fund buying and equities' weakness.

Fed Chairman said U. S. central bank is committed to highly accommodative policy even after deciding last month to trim its bond-buying stimulus.

Bullion prices dropped heavily last week as solid U. S. economic data underlined expectations the Federal Reserve will begin curbing stimulus.