Gold futures rise on global cues, festive demand

Gold prices rose by Rs 197 to Rs 31,537 per 10 gm in the futures trade today as speculators enlarged their positions driven by firming global trend.

Pick-up in demand in the spot market due to festive season further fuelled the uptrend.

At the Multi Commodity Exchange, the December contract rose by Rs 197, or 0.63%, to Rs 31,537 per 10 gm in business turnover of 9,338 lots.

The February contract moved up by Rs 183, or 0.58%, to Rs 31,933 per 10 gm in 492 lots.

Market analysts said increased buying by speculators in tandem with a firming global trend as prospects of more US stimulus and the debt crisis in Europe boosted demand for the metal mainly influenced the sentiment.

They said pick-up in demand in the spot market due to festive season also supported the uptrend.

Meanwhile, gold increased 0.4% to $1,738.19 an ounce, the most expensive since October 19 in Singapore.