Gold climbed to a near record high above $1,900 and on MCX jumped by +2.44% to settled at 28485 as renewed pangs of euro zone debt concerns sent investors fleeing from riskier assets. Stock markets in Europe extended a decline that was set off by Friday's gloomy US payrolls data, with European bank shares sliding to a 29-month low. Expectations that a faltering US economic recovery will force the Fed Reserve to embark on a 3rd round of QE also aided bullion, with traders starting to bet on a repeat of the QE2 program that aided gold's more than 50 percent rise over the past 12 months. Europe faces a string of political and legal tests this week that could hurt efforts to resolve its sovereign debt crisis and increase pressure for governments to try more radical solutions. Gold prices quickly shrugged off news the SGE had temporarily raised trade margins which cover the risk of default for its gold and silver forward contracts. A margin requirement hike on COMEX gold contracts was instrumental in pulling gold from record highs last week. Now technically market is trading in the range as RSI for 18days is currently indicating 68.52, where as 50DMA is at 25150 and gold is trading above the same and getting support at 28030 and below could see a test of 27576 level, And resistance is now likely to be seen at 28727, a move above could see prices testing 28970.

Trading Ideas:

Gold trading range is 27576-28970.

Gold climbed as renewed pangs of euro zone debt concerns sent investors fleeing from riskier assets.

Expectations that faltering US economic recovery will force the Federal Reserve to embark on 3rd round of QE.

Europe faces string of political and legal tests this week that could hurt efforts to resolve its sovereign debt crisis.