Gold on MCX settled up 0.16% at 30772 tracking Comex Gold which turned higher from the day's low where gold touched its lowest level since June 24 at $1,301.91 an ounce, before settled up by 0.4 percent at $1,317.10 as the dollar fell on unexpectedly weak U. S. manufacturing data that raised doubts about the economy's strength. Other U. S. data showed initial claims for state unemployment benefits rose less than expected last week, pointing to sustained labor market strength. Investors, however, are now focused on the release on Friday of the U. S. nonfarm payrolls report for August to see whether it will put the Federal Reserve on track to raise interest rates later this year. An upbeat payrolls report would reinforce the view that a U. S. rate increase is likely before the end of the year after Fed Chair Janet Yellen said last week that the case for higher rates had strengthened. Comments by other Fed officials, however, have been mixed. Gold is highly sensitive to rising U. S. interest rates, which increase the opportunity cost of holding the non-yielding asset. The current gold/silver ratio sits at 69.548 down from yesterday's 70.104. The ratio, when looking at their spot prices, sits at 69.71 . While Holdings of SPDR Gold Trust, fell for a third straight session. Holdings dropped 0.57 percent to 937.89 tonnes on Thursday. Technically market is under short covering as market has witnessed drop in open interest by -3.19% to settled at 8494 while prices up 48 rupee, now Gold is getting support at 30631 and below same could see a test of 30491 level, And resistance is now likely to be seen at 30890, a move above could see prices testing 31009.

Trading Ideas:

Gold trading range for the day is 30491-31009.

Gold gained as the dollar fell on unexpectedly weak U. S. manufacturing data that raised doubts about the economy's strength.

Boston Fed President Eric Rosengren said Fed should consider that quicker interest rate rises over time could stave off risks to the economy.

SPDR gold trust holdings dropped by 0.57% i. e. 5.34 tonnes to 637.89 tonnes from 943.23 tonnes.