Gold settled up 0.63% at 28935 edged higher for a second session on Monday on speculation that the Federal Reserve would slow the pace of its stimulus tapering after a weak U. S. jobs report raised questions over the state of economic recovery. Data on Friday showed that U. S. job creation slowed sharply over the past two months, turning in the weakest performance in three years. Investors will be watching Yellen's first testimony as Fed Chief to U. S. lawmakers. The Fed has started to wind down the bond purchases, or quantitative easing, that has encouraged investments in gold and other commodities. But some gold investors bet the Fed may grow more cautious after data last week showed U. S. job creation slowed sharply over the past two months. Last week, gold rose 2 percent after data showed U. S. job creation slowed sharply over the past two months, fueling speculation that slowing economic momentum will force the U. S. central bank to maintain its current level of stimulus. Gold was also underpinned by rekindled worries over congressional gridlock about raising the federal debt ceiling. In physical markets, consumer demand in China, topped 1,000 tonnes for the first time in 2013, an industry body said on Monday. Chinese demand for jewellery and bullion has been robust since last year due to the slide in prices. However, demand is expected to drop slightly this year from the record levels seen in 2013. China's gold output in 2013 also reached a record high of 428.16 tonnes, making the country the world's biggest producer for a seventh straight year. Technically market is getting support at 28837 and below same could see a test of 28739 level, And resistance is now likely to be seen at 29021, a move above could see prices testing 29107.

Trading Ideas:

Gold trading range for the day is 28739-29107.

Gold edged higher on speculation that Fed would slow the pace of its stimulus tapering after a weak U. S. jobs report raised questions over the state of economic recovery.

China's gold consumption jumped 41 percent in 2013 to exceed 1,000 tonnes for the first time, as a sharp slide in prices attracted buyers for jewellery and bullion.

The U. S. central bank has said it aims to finish the tapering by the end of this year depending on the health of the labour market.