Gold settled at 28525 on fears of policy action from the ECB, shrugging off safe-haven demand from escalating violence in Ukraine. The U.S. dollar rallied to a one-month peak against the euro on Friday, extending steep gains from the previous session after the ECB indicated that it could ease monetary policy as soon as next month. The U.S. Dollar Index, advanced 0.57% on Friday to end the week at 79.92, the most since April 30. A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies. Meanwhile, market players weighed uncertainty surrounding developments in Ukraine. Russian President Putin called on pro-Russia separatists in the eastern reaches of the country to postpone their referendum on independence earlier in the week. However, the separatists said they plan to go ahead on Sunday with a vote that some fear could lead to a civil war. The West is accusing Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea last month. Gold tumbled after Fed Chair Yellen said the central bank expects U.S. economic growth to accelerate this year despite the slowdown in the first quarter. The comments came during testimony to the Joint Economic Committee of Congress. In the week ahead, investors will be looking to U.S. data on retail sales, consumer prices and consumer sentiment for further indications on the strength of the economy and the need for stimulus. Technically market is under short covering and getting support at 28458 and below same could see a test of 28392 level, And resistance is now likely to be seen at 28619, a move above could see prices testing 28714.

Trading Ideas:

Gold trading range for the day is 28392-28714.

Gold settled flat as concerns over ongoing tensions in Ukraine and the risk of a civil war supported demand for the safe-haven

The macro environment continued to weigh down on gold last week, as the ECB chief's comment led to a dollar rally.

India's Gold imports fell 74.1 percent in the first month of the fiscal year 2014/15 from a year earlier.