Gold settled up 0.99% at 26330 as sentiments turned better on the back of increased buying by stockists and retailers amid a firming global trend where gold rose to an almost two-week high as recent fall in prices spurred physical purchases. Also support seen as weaker than expected U.S. data on retail sales and initial jobless claims underlined concerns over the health of the U.S. economy. The U.S. Commerce Department said that retail sales inched up by a seasonally adjusted 0.3% last month, missing expectations for a 0.6% increase. Retail sales for April were revised up to a 0.5% gain from a previously reported increase of 0.1%. Core retail sales, eased up by a seasonally adjusted 0.1% in May, disappointing forecasts for a 0.2% increase. Core sales in April were revised up to a rise of 0.4% from a previously reported flat reading. A separate report from the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 7 increased by 4,000 to a seasonally adjusted 317,000 from the previous week’s revised total of 313,000. Meanwhile, investors monitored developments in Iraq, where insurgents linked to al-Qaeda reportedly took full control of the northern oil city of Kirkuk and moved closer to the capital, Baghdad. On Wednesday, militants from the Islamic State in Iraq and Syria, or ISIS, seized the northern cities of Mosul and Tikrit, renewing concerns over a disruption to supplies from the region. Technically market is under fresh buying and getting support at 26086 and below same could see a test of 25843 level, And resistance is now likely to be seen at 26466, a move above could see prices testing 26603.

Trading Ideas:

Gold trading range for the day is 25843-26603.

Gold prices gained after unrest in Iraq threatened to erupt into outright civil war, which bolstered the yellow metal's safe-haven appeal.

Also support seen as weaker than expected retail sales and initial jobless claims underlined concerns over the health of the U.S. economy.

The U.S. Commerce Department said that retail sales inched up by a seasonally adjusted 0.3% last month, missing expectations.