Gold futures up 0.4% on global cues, short covering

Metal rose by 0.6% in Singapore, the highest level since November 20

Gold futures prices today recovered by 0.49% to Rs 30,320 per 10 gram as speculators enlarged their positions, driven by a firming trend overseas as the dollar weakened and lower prices spurred demand in China.

Besides, covering up of pending short positions by speculators too supported the recovery.

At the Multi Commodity Exchange, gold for delivery in December traded Rs 249, or 0.49%, higher at Rs 30,320 per 10 gram in business turnover of 643 lots.

The metal for delivery in far-month February 2013 contracts moved up by Rs 109, or 0.37%, to Rs 29,430 per 10 gram in a turnover of 89 lots.

Market analysts said a firming trend in the global market where gold rebounded from a four-month low as the dollar weakened and lower prices spurred demand in China, the second-largest consumer, helped the precious metal to trade higher in futures trade here.

Covering up of short positions by participants too influenced gold futures prices, they said.

Meanwhile, gold rose by 0.60% to $1,258.30 an ounce in Singapore, the highest level since November 20.