Gold settled up 0.85% at 28704 tracking gain's from Comex Gold which continuous to hold above $1300 level and settled at 1304.92 as support seen on concerns the Ukraine crisis continues to escalate and weaken the dollar should the U.S. get more involved in the conflict, while upbeat wholesale pricing data also boosted the yellow metal. Russian FM said earlier that Ukraine was “as close to civil war as you can get” and urged all sides to find a solution, which sent gold prices higher on fears skirmishes in the country will escalate. The dollar often weakens as the Ukraine crisis heats up on concerns that Washington will slap more and tougher sanctions on Russia, which could slow recovery, as many U.S. businesses depend on Europe for growth. Elsewhere, a rebounding euro took the steam out of the dollar, which also supported gold. Expectations for the ECB to loosen policy next month have largely been priced into trading, which gave the euro room to rise and the dollar to stand down, often a recipe for higher gold prices. While India’s gems & jewellery exports fell marginally in the previous fiscal year ending March 31 2014 amid weak overseas shipments of gold ornaments medallions and coins the PTI reported. India’s gems and jewellery exports fell last fiscal as the government had stepped up measures to reduce gold imports in a bid to stem the country’s ballooning current account deficit. A decline in gold imports weighed heavily creating a shortage of the precious metal in the domestic market crimping gems and jewellery exports. Technically market is under fresh buying and getting support at 28619 and below same could see a test of 28534 level, And resistance is now likely to be seen at 28769, a move above could see prices testing 28834.

Trading Ideas:

Gold trading range for the day is 28534-28834.

Gold gained after data showed U.S. producer price inflation rose more than expected in April and as investors continued to monitor events in Ukraine.

Bullion seen supported as U.S. government bond yields hit a one-year low after sources told ECB rate cut next month is "more or less a done deal."

Investors remained cautious after seven Ukrainian soldiers were killed and seven wounded in an ambush by pro-Russian separatists in eastern Ukraine