Gold futures up by 2.2% on weak rupee; global cues

Gold for delivery in far-month December spurted by 2.19%

Gold futures prices today recovered by 2.24% to trade above Rs 33,000 level at Rs 33,805 per 10 grams as speculators created fresh positions amid continued weakness in the rupee, making the dollar-quoted precious metal expensive.

Besides, a firming trend overseas and at the domestic spot market on the back of fresh buying by stockists buying ahead of festive season, also supported the rise in gold futures prices here.

At the Multi Commodity Exchange, metal for delivery in October rose by a whopping Rs 741, or 2.24% to Rs 33,805 per ten gram in a turnover of 10,644 lots.

Similarly, the metal for delivery in far-month December spurted by Rs 725, or 2.19%, to Rs 33,806 per 10 gm, clocking a business volume of 783 lots.

Analysts attributed rise in gold prices at futures trade to fresh positions built-up by speculators, triggered by a weakening rupee which again dipped below 68 level against the dollar, making dollar-quoted yellow metal expensive.

Further, fresh buying at domestic spot markets for the upcoming festive season also influenced prices, they said.

Globally, gold rose 0.30% to $1,394.74 an ounce in London in early trade today