Gold settled up 0.46% at 25982 as Rupee weakened as continued dollar buying intervention by the central bank and demand for the dollar from importers offset positive sentiment. While Comex Gold hold above $1250 after U.S. jobs data matched expectations, while a rally in stocks curbed the metal's appeal as an investment hedge. With no major economic data scheduled for Monday, markets were eyeing investment and consumer demand for further cues. The ECB's recent decision to loosen policy coupled with expectations for the Fed to wind down stimulus programs this year reflected in bond markets on Monday, which weakened the euro and gave gold room to rise. Last Thursday, the ECB unveiled a package of measures to battle persistently low inflation rates in the euro area, including cuts to interest rates, while solid U.S. unemployment data kept expectations firm for the Fed to wind down its monthly asset-purchasing program this year. Expectations for an end to monetary stimulus tools in the U.S. strengthened the dollar, which watered down gold's gains as the dollar and the gold tend to trade inversely with one another. The dollar, meanwhile, continued to see support on solid U.S. unemployment data, which also dampened gold's advance. India may increase gold imports as the government is likely to ease import restrictions. From the negative side, gold seems to have irrevocably lost investors’ favor as they switched to riskier assets as illustrated by equities’ rally across the globe. Technically market is under short covering as market has witnessed drop in open interest by -3.47% to settled at 8519 while prices up 119 rupee, now Gold is getting support at 25858 and below same could see a test of 25735 level, And resistance is now likely to be seen at 26057, a move above could see prices testing 26133.

Trading Ideas:

Gold trading range for the day is 25735-26133.

Gold prices moved higher but gains remained limited as a stock market rally dampened safe haven demand for precious metal.

Last week European Central Bank unveiled a package of measures to avert the threat of persistently low inflation in the euro area

The dollar, meanwhile, continued to see support on solid U.S. unemployment data, which also dampened gold's advance.