Gold futures were up by Rs 134 at Rs 28,254 per 10 grams as traders raised bets amid positive cues from global markets.
At the Multi Commodity Exchange, gold for delivery in August was quoting higher by Rs 134 or 0.48 per cent at Rs 28,254 per 10 grams in a business turnover of 8,883 lots.
Similarly, the metal for delivery in far-month October was trading higher by Rs 133 or 0.47 per cent at Rs 28,464 per 10 grams, in 596 lots.
Analysts attributed the rise in gold prices to a firm trend overseas where the yellow metal strengthened as the dollar weakened, boosting demand for precious metals as a store of value.
Meanwhile, gold rose 0.67 per cent to $1,242 an ounce in New York yesterday.