Gold may trade 28322-29036 range, support at 28481

Mumbai-India (Feb 3)   Gold settled up 0.29% at 28641 underpinned by weakness in global equities on concerns over emerging economies but prices on weekly basis seen under pressure due to strong U.S. economic growth, concerns over the U.S. Federal Reserve's withdrawal of monetary stimulus and a slump in Chinese demand. But upbeat U.S. growth data reassured investors worried about capital outflows from emerging markets and also validated the Fed's decision this week to reduce its monthly bond purchases to $65 billion from $75 billion, as expected. Gold was also missing the support of physical demand as the world's number one buyer China has gone into a one-week break.

The International Monetary Fund urged central banks on Friday to ensure that a financial market rout in the developing world does not lead to an international funding crunch. An IMF spokesman said some emerging market countries need to take "urgent action" to improve their economies, which are under threat by a recent sell-off in markets from India and Turkey to Brazil. In the U.S., the Thomson Reuters/University of Michigan final index of sentiment came in at 81.2 in January, beating expectations for a 81.0 reading. Also in the U.S. official data revealed consumer spending rose 0.4% in December, beating expectations for a 0.2% reading, though personal income came in unchanged, missing expectations for a 0.0% gain.

The numbers supported expectations for the Federal Reserve to continue winding down its monthly bond-buying program this year. Sales of gold coins by the U.S. Mint rose 63 percent in January to the highest since April as futures rebounded. Now Gold is getting support at 28481 and below same could see a test of 28322 level, and resistance is now likely to be seen at 28838, a move above could see prices testing 29036.