Gold settled up 0.59% at 29033 after disappointing U. S. jobs data stirred speculation the Federal Reserve will take a gradual approach to tapering its bond-buying stimulus this year. U. S. nonfarm payrolls rose just 74,000 in December, the smallest increase since January 2011, while the unemployment rate fell 0.3 percentage point to 6.7 percent as more people left the labor force. The U. S. private sector added 87,000 jobs last month, disappointing expectations for 195,000 rise, after an upwardly increase of 226,000 in November. The numbers weakened the dollar by fueling expectations for the Federal Reserve to trim its USD75 billion monthly bond-buying program at a slower pace than once expected. Fed asset purchases tend to weaken the dollar by suppressing long-term interest rates, thus making gold an attractive hedge as long as monetary stimulus programs remain in place. The dollar fell broadly and the S&P 500 equities index was flat after a closely watched Labor Department report showed U. S. employers in December hired the fewest number of workers in almost three years. ECB President Mario Draghi reinforced the bank's forward guidance on rates and said the bank was still ready to ready to take "further decisive action" if needed. Draghi reiterated that monetary policy will remain accommodative for as long as is needed in order to assist the economic recovery in the euro area. Russia's gold output rose 13% in the first eleven months of the year due to increased underground gold mining, the union of gold producers reported. Now Gold is getting support at 28872 and below same could see a test of 28712 level, And resistance is now likely to be seen at 29131, a move above could see prices testing 29230.

Trading Ideas:

Gold trading range for the day is 28712-29230.

Gold rose after disappointing U. S. jobs data stirred speculation Fed will take a gradual approach to tapering its bond-buying stimulus this year.

U. S. nonfarm payrolls rose just 74,000 in December, the smallest increase since January 2011, while the unemployment rate fell to 6.7 percent

Dollar weakened fueling expectations for the Federal Reserve to trim its USD75 billion monthly bond-buying program at a slower pace than once expected.