Gold settled up 0.23% at 33064 as rupee snapped two sessions of gains to end weaker on Monday as a slowing economy added to concerns about foreign investors exiting the country. While Gold on COMEX settled down at 1391.95 as the safe-haven appeal of the precious metal was dampened amid fading expectations for imminent US military action against Syria. The precious metal rallied last week amid indications the US was close to taking action against Bashar al-Assad's government. Trading volumes were expected to remain light on Monday, with US markets closed for the Labor Day holiday. US President Obama said that he will first seek approval from Congress before ordering a military strike against Syria. A decision is not expected before September 9, when US lawmakers return from their summer recess. Gold prices surged last week as safe-haven buying picked up amid growing speculation the US was moving closer to taking military action against Syria's government. US Secretary of State John Kerry said Friday that the US would punish Syrian President Bashar al-Assad for a "brutal and flagrant" chemical weapons attack that killed nearly 1,500 people in Damascus last week. Gold traders now looked ahead to key macroeconomic data later this week that will determine when the US will begin withdrawing its stimulus measures. The US will release a closely watched report on US nonfarm payrolls on Friday amid ongoing speculation over when the Fed will start to taper its $85 billion-a-month bond-buying program. Any improvement in the US economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the near-term. Technically market is getting support at 32611 while resistance is now likely to be seen at 33334.

Trading Ideas:

Gold trading range for the day is 32157-33603.

Gold traded in a range as delay in possible U. S. military action in Syria and improved economic data from China and Europe boosted the appetite for riskier assets

Gold last week rose on speculation of a strike against Syria, but gave up some gains after UK lawmakers voted against any involvement.

Investors are scrutinising economic data to gauge the strength of economic recovery and predict when Fed is likely to start curbing its bond-buying programme