Gold settled up 0.34% at 27557 but gains remained limited as Thursday's upbeat U. S. employment data continued to lend support to the U. S. dollar. The U. S. Department of Labor said non-farm payrolls rose by 288,000 last month, easily surpassing expectations for an increase of 212,000.

The previous month's figure was revised up to a gain of 224,000 from a previously reported increase of 217,000. The unemployment rate ticked down to a four-and-a-half year low of 6.1% from 6.3% in May. The upbeat jobs report fuelled optimism over the strength of the labor market and bolstered the outlook for the broader economic recovery. Separately, the Institute of Supply Management said its non-manufacturing purchasing manager's index fell to
56.0 last month from a reading of 56.3 in May.

Trading volumes remained thin on Friday, as U. S. markets were to remain closed for the fourth of July holiday. A stronger U. S. currency makes dollar-denominated assets like gold more expensive for foreign investors. But gold still looked set to post its fifth straight weekly gain, although a small one, as tensions in the Middle East and Ukraine supported prices at the start of the week. U. S. employment growth jumped in June and the jobless rate closed in on a six-year low, providing evidence of economic growth heading into the second half of the year.

Technically market is under fresh buying as market has witnessed gain in open interest by 4.97% to settled at 8701 while prices up 93 rupee, now Gold is getting support at 27473 and below same could see a test of 27390 level, And resistance is now likely to be seen at 27617, a move above could see prices testing 27678.

Gold trading range for the day is 27390-27678.

Gold settled up but gains remained limited as Thursday's upbeat U. S. employment data continued to lend support to the U. S. dollar.

The U. S. Department of Labor said non-farm payrolls rose by 288,000 last month, easily surpassing expectations.

The upbeat jobs report fuelled optimism over the strength of labor market and bolstered the outlook for the broader economic recovery.

The unemployment rate ticked down to a four-and-a-half year low of 6.1% from 6.3% in May.

SELL GOLD AUG @ 27650 SL 27800 TGT 27520-27340.MCX