Gold settled up 1.31% at 29017 rose after disappointing manufacturing data from the United States and China pummelled Wall Street, while jitters about emerging markets bolstered an investor flight to safety. The Institute for Supply Management data showed growth in U. S. manufacturing slowed sharply in January on the back of the biggest drop in new orders in 33 years, while growth in China's manufacturing sector slowed to a six-month low. Bullion had gained for most of January until last week's 2-percent pullback, underpinned by weakness in global equities on concerns over plunging assets in emerging economies. Support also seen after the update that Mexico's pension funds have showed fresh interest in gold, after the lifting of years of strict investment regulations, according to the World Gold Council. The council has talked to about half of the country's twenty or so influential pension fund managers, who together manage $160 billion in assets, said council investment research director Juan Carlos Artigas on Monday. But caution over emerging markets, the U. S. economy and the Federal Reserve's move to taper its stimulus program remain crucial to the metal's moves in the short term. Meanwhile focus will now turn to Friday's U. S. nonfarm payrolls report. Also markets in China, the world's biggest buyer of bullion, are closed until Friday, while Hong Kong, a major trading hub, was shut on Monday for the Chinese New Year holiday. Technically market is under fresh buying as market has witnessed gain in open interest by 5.3% to settled at 9641 while prices up 376 rupee, now Gold is getting support at 28749 and below same could see a test of 28482 level, And resistance is now likely to be seen at 29169, a move above could see prices testing 29322.

Trading Ideas:

Gold trading range for the day is 28482-29322.

Gold rose as prices were supported after a worse than expected U. S. manufacturing report weighed on the dollar and global equities.

ISM said its index of national factory activity fell to its lowest level since May 2013 at 51.3 last month, from a recently revised 56.5 in December.

U. S. manufacturing activity slowed sharply in January on the back of the biggest drop in new orders in 33 years