Gold settled up 0.23% at 28862 rose on Thursday after two days of losses as traders added positions ahead of Friday's key U. S. nonfarm payrolls report, which will be closely watched for clues on whether the Federal Reserve will keep trimming its bond-buying stimulus. Bullion climbed even as data showed U. S. weekly jobless claims fell last week and planned layoffs hit a 13-1/2 year low in December, adding to a string of recent data that have suggested the economy is gaining steam. Market said that possible disappointment over Friday's jobs data could give gold a boost in the short term. However, the precious metal is likely to remain under pressure this year after the Fed opted to cut its monthly asset purchases by $10 billion in December. The Federal Reserve has said it will pay close attention to indicators when deciding the fate of its USD75 billion monthly bond-buying program - Fed bond purchases aim to prop up the economy by suppressing long-term borrowing costs, weakening the dollar as a side effect as long as they remain in effect, thus making gold an attractive hedge. By Thursday, however, the dollar cooled its gains as the rally ended ahead of the Friday release of official U. S. December jobs figures, which gave gold prices room to rise on demand from bottom fishers. On the physical side, premiums on the Shanghai Gold Exchange were steady at $17 an ounce as demand picked up ahead of the Chinese New Year. Technically market is under fresh buying as market has witnessed gain in open interest by 1.65% to settled at 8613 while prices up 66 rupee, now Gold is getting support at 28746 and below same could see a test of 28629 level, And resistance is now likely to be seen at 28946, a move above could see prices testing 29029.

Trading Ideas:

Gold trading range for the day is 28629-29029.

Gold rose after two days of losses as traders added positions ahead of Friday's key U. S. nonfarm payrolls report

Bullion climbed even as data showed U. S. weekly jobless claims fell last week and planned layoffs hit a 13-1/2 year low in December.

ECB President reiterated that euro zone borrowing costs will remain at their present or lower levels until conditions improve