Gold on MCX settled up 0.6% at 28524 rose for the first time in a week as the dollar weakened and stocks sold off following an executive order by President Trump to impose a temporary ban on citizens from several majority-Muslim countries. On the U.S. economic front, the Commerce Department released a report showing that personal income increased by slightly less than expected in the month of December. Although market participants allocate resources into gold to hedge risk exposure and inflation, there is nothing set in stone and the lack of any yield makes the metal less attractive when compared to other assets classes such as Treasuries or Sovereign bonds. Furthermore, Comex Gold's inability to keep trading above $1220/oz build doubts around the medium-term outlook for gold prices. Looking forward, the upside to gold could increase if investors begin to see gold as a haven buy amid uncertainty over Mr. Trump’s presidency. Trump's administration tempered a key element of his immigration ban, but the move reinforced growing worries about investing in the United States. The Fed raised interest rates in December and at that time signaled as many as three rises in 2017 as the Trump administration takes over with promises to boost growth through tax cuts, spending and deregulation. Higher rates could mean a higher U.S. currency, which makes dollar-denominated gold more expensive for holders of other currencies, potentially dampening demand. In the week ahead, markets will be paying close attention to Friday’s U.S. nonfarm payrolls report for January as well as Wednesday’s policy statement by the Fed. Investors will also be watching central bank meetings in Japan and the UK. Technically market is getting support at 28386 and below same could see a test of 28249 level, And resistance is now likely to be seen at 28610, a move above could see prices testing 28697.

Trading Ideas:

Gold trading range for the day is 28249-28697.

Gold prices edged up on a weaker dollar and as uncertainty over U.S. policy under President Donald Trump stoked safe-haven demand.

The upturn in safe-haven buying comes at a time when physical demand has been sapped due to the Lunar New Year holiday in Asia

Economic growth in the country slowed sharply in the fourth quarter as a plunge in shipments of soybeans weighed on exports, the data showed.