Gold prices settled up by +0.52% at 31331 as rupee fell to a one-week low and posted its biggest single-day fall in three months, as custodian banks bought dollars on the back of sharp losses in local shares, while global risk assets weakened on global economy concerns. While gold slipped in international as investors continued to favor dollar positions in the wake of strong employment and slow growth warnings from the Fed. Gold dropped as US unemployment rate fell to 7.8% vs 8.1% in August, the Bureau of Labor Statistics reported Friday. Gold prices have risen in recent sessions thanks to Fed stimulus tools that weaken the dollar, though investors viewed the September jobs report as a reason to sell for profits early Monday. The US Fed is currently running a third round of quantitative easing, a monetary stimulus tool that sees the US central bank buy $40bn in mortgage backed securities a month on an open-ended basis to spur recovery. Holdings of gold-backed ETF hit a record high suggesting that investor interest in bullion remained strong. Holdings of gold ETFs rose to a historical high of 74.73 million ounces by Oct. 7. Gold as an investment instrument is likely to see a 7%-10% growth in the Oct-Dec quarter largely driven by festival demand. Now technically market is getting support at 31154 and below could see a test of 30977 level, And resistance is now likely to be seen at 31435, a move above could see prices testing 31539.

Trading Ideas:

Gold trading range for the day is 30977-31539.

Gold ended with gains on rupee weakness despite of fall in international markets as buyers remained wary of bullion

Euro zone finance ministers and the International Monetary Fund held a "thorough and robust" debate on Greece

SPDR gold trust holdings gained by 7.08 tonnes to 1340.52 tonnes.