Gold futures up 0.29 per cent on firm global cues, spot demand

Gold futures prices on Wednesday rose by 0.29 per cent to Rs 27,655 per 10 grams as speculators enlarged positions, largely in tandem with a firming trend overseas amid rising spot demand.

At the Multi Commodity Exchange, metal prices for delivery in August gained Rs 81, or 0.29 per cent, to trade higher at Rs 27,655 per 10 gm in a turnover of 537 lots.

Similarly, the metal prices for delivery in far-month October edged up by Rs 80, or 0.29 per cent, to Rs 27,695 per 10 gm, clocking a business volume of 129 lots.

Analysts attributed gains in the precious metal at futures trade to a firm trend in overseas markets on speculation that the Federal Reserve will maintain US economic stimulus, boosting appeal of the precious metal as a safe haven investment.

Besides, a firming trend at spot markets following the RBI imposing fresh import norms, also supported the rise, they said.

In the national capital, spot gold prices shot up by Rs 685 to hit an over one-month high of Rs 28,365 per 10 grams in Tuesday's trade.

Globally, gold rose by $12.50, or 0.94 per cent, to $1,347.70 an ounce in New York on Tuesday.