Gold settled up 0.56% at 29519 as the release of downbeat U. S. economic reports prompted investors to flock to the safe-haven precious metal. Volatility in the currency market led by the plummeting Argentina peso and Turkish lira prompted investors to buy gold. Gold prices rallied after data on Thursday showed that U. S. initial jobless claims rose in line with expectations last week, but the number of continuing jobless claims remained above the three million mark for the second successive week. Gold prices had rallied as a drop in the dollar and a call from India's ruling party chief to review import restrictions on bullion prompted a spate of short-covering. Gold is on track to record a fifth straight weekly gain for the first time since September 2012. Chinese demand eased, with premiums on the Shanghai Gold Exchange dropping to $10 an ounce from $12 the previous day. China in 2013 took over from India as the world's leading consumer of gold jewellery. Gold premiums in India, the second-biggest buyer of the metal after China, fell more than 30 percent from earlier this week on speculation about easing of restrictions on bullion imports. India used to be the world's biggest buyer of bullion until the government and central bank stepped in last year with import curbs aimed at reducing a record current-account deficit. However, gold investment demand remains weak, with the world's largest gold-backed exchange-traded fund SPDR Gold Shares posting a 5.4-tonne outflow on Thursday. Last week, it logged its first weekly inflow since early November. Now Gold is getting support at 29289 and below same could see a test of 29059 level, And resistance is now likely to be seen at 29712, a move above could see prices testing 29905.

Trading Ideas:

Gold trading range for the day is 29059-29905.

Gold gained as the release of downbeat U. S. economic reports prompted investors to flock to the safe-haven precious metal.

Gold prices rallied after data on Thursday showed that U. S. initial jobless claims rose in line with expectations last week

Gold premiums in India fell more than 30 percent on speculation about easing of restrictions on bullion imports.