Gold settled down -0.72% at 28359 tracking Comex Gold future which fell over 1% to settled under $1,200 an ounce on Monday, heading for its biggest annual loss in more than three decades at nearly 30%, as a willingness to take on more risk and the prospect of a global recovery tarnished bullion's shine. US equities soared to six-year highs as optimism over the global economy spurred a switch into riskier assets ahead of 2014. Gold's performance in 2013 has put an end to 12 straight years of growth, with prices hit by the U. S. central bank's decision to rein in its monetary stimulus, which will raise the opportunity cost of holding the non-yielding asset. Expectations that the U. S. economy will improve and the rest of the world's growth will stabilise in 2014, have further undermined the case for holding bullion, as investors look to put their money in riskier assets like equities. In wider markets, the dollar fell 0.4% versus a basket of currencies as the 10-year U. S. notes yield steadied below an earlier two-year high. Heavy outflows from gold-ETF also reflected investors' diminishing interest. Holdings on SPDR Gold Trust fell three tonnes on Friday to their lowest since Jan. 2009 at 801.2 tonnes. Hedge funds and money managers cut their bullish bets in gold and silver in the week to Dec. 24, data from the CFTC showed on Monday. Trading volumes were thin as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves. Technically market is getting support at 28277 and below same could see a test of 28194 levels, And resistance is now likely to be seen at 28497, a move above could see prices testing 28634.

GOLD

Gold trading range for the day is 28194-28634.

Gold settled down tracking Comex Gold which settled under $1,200 as a willingness to take on more risk and the prospect of a global recovery

Expectations that the U. S. economy will improve and the rest of the world's growth will stabilise in 2014, have further undermined the case for holding bullion

Holdings on SPDR Gold Trust fell three tonnes on Friday to their lowest since Jan. 2009 at 801.2 tonnes.

Hedge funds and money managers cut their bullish bets in gold and silver in the week to Dec. 24, data from the CFTC showed on Monday.

SELL GOLD FEB @ 28480 SL 28560 TGT 28370-28260.MCX