Gold futures up on firm Asian trend

Gold prices rose by Rs 232 to Rs 26,965 per 10 grams in futures trading on Tuesday as speculators enlarged their positions.

Trading sentiment bolstered after gold climbed in Asian region as concern that the sovereign-debt crisis in Europe might worsen, prompted investors to buy the metal as a hedge against financial turmoil.

At the Multi Commodity Exchange, gold for delivery in December rose by Rs 232, or 0.87 per cent, to Rs 26,965 per 10 grams, with a business turnover of 5,868 lots.

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Likewise, the metal for delivery in October moved up by Rs 188, or 0.71 per cent, to Rs 26,744 per 10 grams, with an open interest of 56 lots.

Market analysts said increased buying by speculators on rise in spot market demand amid a firming trend in Asian region, mainly led to the rise in gold futures prices.

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Meanwhile, gold gained 0.9 per cent to $1,672.38 an ounce, its highest level since September 27 in Singapore.