Gold settled up 0.41% at 26163 snapped a five-day loss to end higher with continued focus on the Federal Reserve policy meet next week as the uncertainty over an interest rate hike persists. Gold prices found additional support with the dollar weakening against a basket of some major currencies. While a September rate hike might be coin toss, it is widely anticipated that policy makers will tighten sometime before the year end. With the dollar strengthening and risk appetite picking up, gold dropped near $1100 in the previous session. US Labor Department report showed jobless claims to have pulled back in line with estimates in the week ended September 6, after reporting a bigger than expected increase in first-time claims for U.S. unemployment benefits in the previous week. A Labor Department report showed U.S. import prices fell more than expected in August, with fuel prices showing another substantial decrease. While holdings of SPDR Gold Trust, declined to 672.18 tons from its previous close of 682.35 tons. In the month of August 2015, India imported 126 tonnes of gold and 1,400 tonnes of silver. Gold import into India is rising after a steep fall due to government import restrictions implemented in 2013. YTD India has imported 654 tonnes of gold, which is 66 % up year on year 6,782 tonnes in silver bars have crossed the Indian border so far this year, up 96 % y/y. Gold import is set to reach an annualized 980 tonnes, which would be up 26 % relative to 2014 and would be the second highest figure on record goes back to 2008. Technically market is getting support at 26041 and below same could see a test of 25918 level, And resistance is now likely to be seen at 26288, a move above could see prices testing 26412.

Trading Ideas:

Gold trading range for the day is 25918-26412.

Gold rose from lows as European stocks snapped a three-day run of gains, but traders remained cautious on the timing of a U.S. rate hike.

Data showed the U.S. labour market appeared to gain momentum in early September as fewer Americans filed for weekly unemployment benefits.

Concerns over slowing growth in China, mixed economic data and volatility in financial markets have increased uncertainty about the timing of a U.S. rate increase.