Gold futures prices staged a comeback to trade 0.87 per cent higher at Rs 28,657 per 10 grams today, tracking a rebound in global markets as a weak dollar raised the demand for the precious metal.
At the Multi Commodity Exchange, gold for delivery in December shot up by Rs 248 or 0.87 per cent to Rs 28,657 per 10 grams with a business turnover of 3,484 lots. Similarly, the metal for delivery in far-month February also rose Rs 242 or 0.84 per cent to Rs 28,975 per 10 grams with a trade volume of 755 lots.
Market analysts attributed the recovery in gold futures to a firming trend overseas, where the precious metal recovered after reports that the International Monetary Fund is preparing a loan for Italy. IMF's move strengthened the euro against the dollar and raised the demand for the previous metal as an alternative investment.
Globally, spot gold prices rose 1.4 per cent to $1,707.13 an ounce in the Singapore in early trade today.