Gold futures traded higher by Rs 59 at Rs 27,177 per 10 grams as speculators created fresh bets amid positive cues from global markets.
On the Multi Commodity Exchange, gold for delivery in October was trading higher by Rs 59 or 0.22 per cent at Rs 27,177 per 10 grams in a business turnover of nine lots.
Similarly, the metal for delivery in August was trading higher by Rs 55 or 0.2 per cent at Rs 26,935 per 10 grams in a turnover of 640 lots.
Analysts attributed the rise in gold prices to a firm trend overseas, where it extended gains as the dollar fell, adding to the appeal of the precious metal, after the Fed signalled that the pace of policy tightening will be gradual.
Meanwhile, gold was trading 0.2 per cent higher at $1,187.47 an ounce in Singapore.