Gold settled down -0.04% at 28564 recovering from lows supported by some physical buying, but remained on track for its biggest annual loss in three decades as rallies in equities and prospects of global economic recovery dented its appeal. Expectations that the U. S. economy can stand on its own as monetary stimulus is withdrawn were buoyed by data on Thursday showing a decrease in weekly jobless claims. SPDR gold trust holding dropped by 3.00 tonnes to 801.22 tonnes from 804.22 tonnes. Bullion has dropped this year as the long-expected tapering of the U. S. Federal Reserve's bond-buying stimulus programme took the shine off the precious metal, which is seen as a hedge against inflation. Physical buying from Chinese consumers on Friday, but demand from Indonesia and Thailand had eased in recent weeks because of their weak currencies. Premiums for gold bars inched up to a high of $2 an ounce above spot London prices in Hong Kong, higher than $1.50 last week on some tightness at the end of the year as dealers awaited the arrival of fresh supply from Europe next month. Talk of heightened physical demand in China sent gold prices rising earlier though gains were muted on sentiments that the Federal Reserve's plans to trim USD10 billion from its USD85 billion in monthly bond purchases in January will lead to further cuts to the stimulus program. Fed bond purchases have elevated gold prices for over a year by suppressing long-term interest rates, weakening the dollar in the process. Now Gold is getting support at 28330 and below same could see a test of 28095 level, And resistance is now likely to be seen at 28720, a move above could see prices testing 28875.

Trading Ideas:

Gold trading range for the day is 28095-28875.

Gold settled flat as prices recovered from lows on the back of increased physical demand.

Expectations that the U. S. economy can stand on its own as monetary stimulus is withdrawn were buoyed by data showing a decrease in weekly jobless claims

SPDR gold trust holding dropped by 3.00 tonnes to 801.22 tonnes from 804.22 tonnes.