Gold on MCX settled down -0.91% at 28528 after Federal Reserve Chair Janet Yellen said the U.S. economy is strong enough to warrant higher interest rates. Better-than-expected jobs and housing data reinforced the view that the U.S. economy is sufficiently robust to warrant rate rises, turning back recent falls for the dollar and pushing 10-year bond yields to their highest since Jan. 3. One day before U.S. With monetary policy still modestly accommodative, the U.S. central bank should continue to raise interest rates slowly to keep jobs plentiful and inflation low, Federal Reserve Chair Janet Yellen said. "I think that allowing the economy to run markedly and persistently “hot” would be risky and unwise," Yellen said in remarks prepared for delivery to the Stanford Institute for Economic Policy Research. President-elect Donald Trump was set to be sworn in, San Francisco Federal Reserve Bank President John Williams, an influential policymaker, said that while there was uncertainty over the economic outlook, it was no more pronounced than usual. Investors were looking ahead to the inauguration on Friday of President-elect Donald Trump, who has mixed promises of tax cuts and infrastructure spending with protectionist statements that have increased demand for gold as a safe haven. The European Central Bank stuck to its super-easy monetary policy on Thursday, telling those calling for a tightening -like economic powerhouse Germany - to be patient as the bloc slowly regains its economic health. Technically market is under long liquidation as market has witnessed drop in open interest by -5.16% to settled at 6751 while prices down -263 rupee, now Gold is getting support at 28444 and below same could see a test of 28359 level, And resistance is now likely to be seen at 28630, a move above could see prices testing 28731.

Trading Ideas:

Gold trading range for the day is 28359-28731.

Gold dropped after Federal Reserve Chair Janet Yellen said the U.S. economy is strong enough to warrant higher interest rates.

Better than expected jobs and housing data reinforced the view that the U.S. economy is sufficiently robust to warrant rate rises.

Fed chief said that she and other Fed policymakers expected the central bank to lift its key benchmark short-term rate "a few times a year" through 2019.