Gold futures at fresh highs on Asian cues, weak dollar

Supported by firming global trends, gold climbed to a fresh high of Rs 17,759 per 10 gram for April contract in futures trading at the Multi Commodity Exchange today.

All the three running contracts -- December, February and April -- surged to hit new highs.

At the MCX counter, gold for far-month April contract rose by 0.66 per cent to hit a new record high of Rs 17,759 per 10 gram with a business turnover of 21 lots.

In similar fashion, the yellow metal for delivery in February month contract also shot up by 0.51 per cent at Rs 17,710 per 10 gram in a turnover of 458 lots, while December month contract gained  0.58 per cent at Rs 17,648 per 10 gram, in a turnover of 2,429 lots.

Meanwhile, gold spot in Asia touched a record high of $1,175.60 per ounce, up 0.50 per cent in early trade supported by continued weakness in the US currency, enhancing the metal's appeal as an alternative investment.

"Gold prices globally have been influenced by the weaker US dollar and recent central bank purchases of the precious metal", said an analyst.

Market analysts said the trading sentiment in the domestic futures market got a boost after the precious metal surged to a record high in Asian trade as dollar fell to seven-week low against yen.

Besides, a recent purchase of 200 tonnes of gold by the Reserve Bank of India also sparked a rally that lifted the precious metal to record highs, they said.