Gold futures up on firm global cues

Gold futures extended gains for the second straight day by gaining 0.34 per cent in afternoon trade on the Multi Commodity Exchange (MCX) today as traders and speculators indulged in enlarging positions, driven by firming global trends.

At the MCX platform, gold for the most-active August contract added 0.34 per cent to Rs 14,657 per 10 grams, with an open interest in 14,563 lots.

Similarly, the metal for delivery in October gained 0.30 per cent to Rs 14,658 per 10 grams, clocking 1,012 lots.

Trading sentiment remained better as gold gained for the second day in Asia as the dollar weakened and investors concern increased that inflation may accelerate, spurring demand for the precious metal as an alternative investment.

In Asian trade, gold gained 0.5 per cent to $959.54 an ounce.

Market analysts attributed gains in the precious metal to firming trend in the overseas markets after a weakening US dollar raised gold's appeal as an alternative investment.