Gold settled up 1.13% at 26627 at the highest level in almost three-weeks, as concerns over escalating violence in Iraq boosted demand for safe-haven assets. On the week, Gold gained as escalating violence in Iraq drove crude oil prices to nine-month highs. Gold traders continued to monitor events in Iraq as militants linked to al-Qaeda threatened to take Baghdad after capturing key cities elsewhere in the country earlier in the week. On Friday, U.S. President said the U.S. won't send in troops to the Middle Eastern country quell the insurgency. Gold is often considered a haven during times of geopolitical turmoil. Elsewhere, in the U.S., data released Friday showed that that U.S. consumer sentiment unexpectedly deteriorated in June. The preliminary reading of the University of Michigan's consumer sentiment index for June came in at 81.2, down from 81.9 in May. The report came a day after data showed that U.S. retail sales rose less than expected in May, but the previous month was revised higher. The Commerce Department said Thursday that U.S. retail sales rose 0.3% in May against expectations for a 0.6% gain. However, retail sales for April were revised up to a 0.5% gain from a previously reported increase of 0.1%. In the week ahead, investors will be focusing on the outcome of Wednesday’s Fed policy meeting. Data from the CFTC released Friday showed that hedge funds and money managers slightly increased their bullish bets in gold futures in the week ending June 10. Technically market is under short covering as market has witnessed drop in open interest by -2.32% to settled at 9012, now Gold is getting support at 26412 and below same could see a test of 26197 level, And resistance is now likely to be seen at 26751, a move above could see prices testing 26875.

Trading Ideas:

Gold trading range for the day is 26197-26875.

Gold settled up as escalating violence in Iraq boosted demand for the precious metal as a haven.

Elsewhere, soft U.S. economic indicators kept gold prices in positive territory.

U.S. producer prices unexpectedly sank in May, while consumer sentiment data showed a decline in June to lowest level in three months.