Gold prices edged higher as caution surrounding Donald Trump’s future policies continued to boost demand for the safe-haven precious metal. Gold prices initially dropped due to a stronger U.S. dollar late Thursday, after Fed Chair Janet Yellen said the central bank should continue to raise interest rates, but slowly. Speaking at a conference in San Francisco, Yellen said that "allowing the economy to run markedly and persistently ‘hot’ would be risky and unwise," before adding: "I consider it prudent to adjust the stance of monetary policy gradually over time." The greenback also strengthened following the release of strong U.S. jobless claims and housing starts data, as well as an upbeat Philly Fed manufacturing activity report. A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies. Demand for gold was also boosted by data showing that China’s gross domestic product rose 6.8% in the fourth quarter of 2016, in line with expectations. Gold demand slowed in India this week as buyers postponed purchases on expectation of a cut in import duty and after a rebound in prices, while it was tepid across other major trading centres in Asia. In India, the world's second-largest consumer of the metal, dealers were charging a premium of up to $2 an ounce this week over official domestic prices that include a 10 percent import tax. Technically market is under short covering as market has witnessed drop in open interest by -2.4% to settled at 6589 while prices up 97 rupee, now Gold is getting support at 28540 and below same could see a test of 28455 level, And resistance is now likely to be seen at 28703, a move above could see prices testing 28781.

Trading Ideas:

Gold trading range for the day is 28455-28781.

Gold prices edged higher as caution surrounding Donald Trump’s future policies continued to boost demand for the safe-haven precious metal.

Demand for gold was also boosted by data showing that China’s gross domestic product rose 6.8% in the fourth quarter of 2016, in line with expectations.

Gold demand slowed in India this week as buyers postponed purchases on expectation of a cut in import duty and after a rebound in prices.