Gold settled down -0.73% at 27993 as speculation that the Federal Reserve will raise U. S. interest rates sooner than expected outweighed concerns that tensions between Ukraine and Russia will escalate. Gold, seen as a hedge against risk in times of uncertainty, jumped on Thursday as investors bought back their bearish bets in the metal and sought shelter from further turmoil in equities after a Malaysian airliner over Ukraine was shot down.

Concerns that even more sanctions may be slapped on Russia in wake of the incident softened the dollar and bolstered gold by fueling fears the fallout will weigh on global recovery, thus prompting the Federal Reserve and central banks around the world to keep policy loose for longer than once anticipated. U. S. Barack President Obama said Friday, however, that sanctions were aimed at having minimal impacts on the global economy, which opened the door for profit taking and sent gold prices lower. Disappointing U. S. sentiment data also fueled Friday's profit taking.

Meanwhile Hedge funds and money managers cut bullish bets on gold futures and options this week for the first time in six weeks as prices tumbled as fears faded over the health of the banking sector in euro zone peripheral economies. SPDR gold trust holdings gained by 1.80 tonnes i. e. 0.22% to 805.14 tonnes from 803.34 tonnes. Technically market is under long liquidation as market has witnessed drop in open interest by -5.69% to settled at 8032 while prices down -206 rupee, now Gold is getting support at 27881 and below same could see a test of 27768 level, And resistance is now likely to be seen at 28143, a move above could see prices testing 28292.

Trading Ideas:

Gold trading range for the day is 27768-28292.

Gold dropped as speculation that the Federal Reserve will raise U. S. interest rates sooner than expected.

Gold seen as a hedge against risk in times of uncertainty, jumped on Thursday as investors bought back their bearish bets in the metal.

SPDR gold trust holdings gained by 1.80 tonnes i. e. 0.22% to 805.14 tonnes from 803.34 tonnes.