Gold settled up 0.36% at 28754 after data showed U. S. job creation slowed sharply over the past two months, fueling speculation that slowing economic momentum will force the Federal Reserve to keep its current stimulus. For the week gold ended with gains boosted by safe-haven demand driven by tumbling currencies and assets in emerging markets. Bullion, however, failed to hold on to highs hit earlier Friday after U. S. nonfarm payrolls rose only 113,000 last month after a meager 75,000 gain in December. The metal's rise was limited by an over 1 percent rally in the S&P 500 equities index as expectations of further economic strength more than offset the weak reading on the labor market, which was blamed partly on the weather. The Fed decided to trim its bond purchases by another $10 billion as it stuck to a plan to wind down its extraordinary economic stimulus despite recent turmoil in emerging markets. China returned to the physical gold markets strongly after a week-long break as banks and retailers looked to restock inventory following strong sales during the Lunar New Year holiday. Gold premiums in India, the second biggest gold consumer, fell to $70-75 an ounce, compared to $80 last week, on higher availability of imported finished jewellery and smuggled goods. India has put in place measures to dissuade gold buying to tackle a high trade deficit, including a 10 percent import tax and a requirement that a fifth of all imports be shipped out. The scarcity of the metal has in turn boosted smuggling. Now Gold is getting support at 28658 and below same could see a test of 28562 level, And resistance is now likely to be seen at 28875, a move above could see prices testing 28996.

Trading Ideas:

Gold trading range for the day is 28562-28996.

Gold rose after data showed U. S. job creation slowed sharply over the past two months

China returned to the physical gold markets strongly after a week-long break as banks and retailers looked to restock inventory

Gold premiums in India fell to $70-75 an ounce, compared to $80 last week, on higher availability of imported finished jewellery and smuggled goods.