Gold prices settled flat as strong US retail sales drove the dollar and US bond yields higher, with the metal on track for a third straight weekly gain. The greenback and yields were initially higher on the back of strong U. S. retail sales, which reinforced the prospect of the Federal Reserve raising rates this year, perhaps sooner than previously expected. The gold price has risen 6.5 percent since a mid-December low and on Thursday reached its highest level since Nov. 23, after President-elect Donald Trump failed to elaborate on his plans to cut taxes and boost infrastructure spending. Investors were looking ahead to Trump's inauguration on Jan. 20, when they will again be looking for detail on his plans for the U. S. economy. Physical gold sales eased in Asia this week as steadily higher prices kept buyers on the sidelines and premiums remained mostly unchanged across the continent. In India, the world's second-largest consumer of the metal, higher prices prompted retail buyers to postpone purchases for wedding season. Dealers in India were charging a premium of up to $1 an ounce this week over official domestic prices, unchanged from the previous week. The domestic price includes a 10 percent import tax. In China, the world's top gold consumer, gold was sold at a premium of around $17 to the global benchmark, almost unchanged from last week. Technically market is under long liquidation as market has witnessed drop in open interest by -2.4% to settled at 7108 while prices down -13 rupee, now Gold is getting support at 28266 and below same could see a test of 28153 level, And resistance is now likely to be seen at 28466, a move above could see prices testing 28553.

Trading Ideas:

Gold trading range for the day is 28153-28553.

Gold prices settled flat as strong US retail sales drove the dollar and US bond yields higher, with the metal on track for a third straight weekly gain.

Gold imports in December fell 71 percent from a year ago to 31 tonnes as a cash crunch squeezed demand.

In China, the world's top gold consumer, gold was sold at a premium of around $17 to the global benchmark, almost unchanged from last week.