Gold prices edged higher as investors seeking to diversify their assets increased physical holdings of the metal. Gold's globally traded spot contract and New York's most active futures each rose about 1 percent for the session as investors and traders pared bearish bets ahead of Monday's Memorial Day holiday, which made for a longer weekend in the United States. Earlier in the day, gold came under pressure after a plea for help from Spain's wealthy Catalonia region. That plea forced then euro, already battered by Greece's woes, to a new 22-month low versus the dollar. In the physical market for gold, buying interest from main consumer India remained light, while gold bar premiums in Hong Kong and Singapore held steady. Premiums of gold bars in Tokyo, however, rose to as much as $1.50 an ounce above London prices, the highest since last March, as investors turned from sellers to buyers during a recent price downturn. In other trading news, CME Group Inc, the world's largest commodities exchange, on Thursday cut margins for trading gold and some other contracts, with effect from the close of business on May 29. Margins for trading gold have been lowered by about 21 percent this year. Now technically market is trading in the range as RSI for 18days is currently indicating 54.05, where as 50DMA is at 28684.72 and gold is trading above the same and getting support at 28907 and below could see a test of 28890 level, And resistance is now likely to be seen at 28953, a move above could see prices testing 28982.

Trading Ideas:

Gold trading range for the day is 28890-28982.

Gold prices edged higher as investors seeking to diversify their assets increased physical holdings of the metal.

Earlier prices came under pressure after a plea for help from Spain's wealthy Catalonia region.

CME Group said it had lowered its margin requirements for Gold contracts by 10%