Gold settled up 0.17% at 25881 on last trading day while on weekly basis prices traded with weakness as an improving U. S. economic outlook dented its appeal as an investment-hedge also investors were hesitant to buy into the market amid a weak technical outlook. Gold prices have been under heavy selling pressure in recent weeks as upbeat U. S. economic data underlined the view that the U. S. economy is shaking off the effects of a weather-related slowdown over the winter, bolstering the outlook for the broader economic recovery. While data released Thursday showed that the U. S. economy contracted at a seasonally adjusted annual rate of 1% in the first quarter. While harsh winter weather dampened spirits, concerns wages will remain weak did more so. "The May decline in consumer confidence was not due to the dismal state of the economy during the 1st quarter, which had the weakest pace of GDP growth in three years. Consumers thought the harsh winter weather was mainly responsible," the indicator's statement read. Data from the CFTC released Friday showed that hedge funds and money managers significantly decreased their bullish bets in gold futures in the week ending May 27. In the week ahead, investors will be looking to Friday's U. S. nonfarm payrolls report for May for further indications on the strength of the labor market and the need for stimulus from the Fed Reserve. Technically market is under fresh buying as market has witnessed gain in open interest by 17.65% to settled at 8178 while prices up 43 rupee, now Gold is getting support at 25770 and below same could see a test of 25660 level, And resistance is now likely to be seen at 25990, a move above could see prices testing 26100.

Trading Ideas:

Gold trading range for the day is 25660-26100.

Gold settled up but on weekly basis seen under pressure as an improving U. S. economic outlook dented its appeal as an investment-hedge.

Prices largely ignored a U. S. government report which showed falling U. S. consumer spending for the first time in a year in April.

Heavy technical selling throughout the week sent bullion prices below $1,250 for the first time since Feb. 4.