Gold futures extend gains, up 0.19% on global cues

Tracking a firming trend overseas on increased physical purchases by investors, gold futures prices rose by 0.19% to Rs 27,241 per 10 grams today.

Besides covering-up of short positions by speculators fearing further rise, firm demand in the domestic spot markets also supported the upside in gold prices.

At the Multi Commodity Exchange, the June contract rose Rs 52, or 0.19%, to trade higher at Rs 27,241 per 10 gm in a turnover of 1,106 lots.

The August contract edged higher by Rs 44, or 0.24%, to Rs 27,621 per 10 gm, clocking a business volume of 32 lots.

At the spot markets, gold traded Rs 100 higher at Rs 28,100 per 10 gm in the national capital in the previous session on Saturday. In the last five days, gold prices rose by Rs 1,000 per 10 grams.

Analysts said sustained rise in the global markets on the back of rising physical purchases of the precious metal, supported the rise in gold prices at futures trade here.

Further, covering-up of short positions by speculators and rising demand at current levels in the domestic spot market also influenced prices, they said.

Globally, gold climbed 0.70% to $1,472.78 an ounce in Singapore today. Prices have gone up by nearly 5% after touching $1,321.50 on April 16, the lowest level in over two years.