Gold settled down -0.43% at 28100 as on cues from rising global equity markets prompting investors to seek riskier assets with little or no significant economic data release for direction. Investors also continued to mull over the state of the U.S. economy and the possible timing of the Fed's rate hike. Meanwhile, the Finance Ministry in India indicated there would be no easing in its gold import curbs any time soon, reasoning that the move could impact the country's CAD situation due to the geopolitical tensions prevailing in Iraq and other places. On Friday, gold futures ended higher on some disappointing data from the U.S. with employment rising less than expected with unemployment rate increasing. Last week, gold futures shed about 0.7 percent. In economic news, Portugal's central bank unveiled a plan to rescue one of the country's largest lenders, Banco Espirito Santo, late Sunday after it reported a record EUR 3.6 billion first-half loss. The plan provides the general activity and assets of the troubled BES to be transferred immediately to a new company called Novo Banco. Meanwhile, India's central bank is widely expected to leave its interest rates unchanged on Tuesday as it awaits more signs on the price front to confirm a slowdown in inflation. Holdings of SPDR Gold Trust remained unchanged at 801.84 from its previous close on Monday. The U.S. economic calendar is relatively light this week, with the ISM services and factory orders data due on Tuesday before reports on trade balance and weekly jobless claims due out later in the week. Technically market is under fresh selling and getting support at 28015 and below same could see a test of 27930 level, And resistance is now likely to be seen at 28236, a move above could see prices testing 28372.

Trading Ideas:

Gold trading range for the day is 27930-28372.

Gold fell as a bailout agreement to rescue Portugal's largest listed bank and higher equities lessened safe-haven buying.

Bullion has dropped in five out of the last six sessions after a string of encouraging U.S. economic data.

SPDR gold trust holdings dropped by 1.79 tonnes i.e. 0.22% to 800.05 tonnes from 801.84 tonnes.