Gold futures up 0.87% on global cues

Gold futures prices staged a comeback to trade 0.87% higher at Rs 28,657 per 10 grams today, tracking a rebound in global markets as a weak dollar raised demand for the precious metal.

At the Multi Commodity Exchange, gold for delivery in December shot up by Rs 248, or 0.87%, to Rs 28,657 per 10 grams, with a business turnover of 3,484 lots.

The metal for delivery in far-month February also rose by Rs 242, or 0.84%, to Rs 28,975 per 10 grams, with a trade volume of 755 lots.

Market analysts attributed the recovery in gold futures to a firming trend overseas, where the precious metal recovered after reports that the International Monetary Fund is preparing a loan for Italy, strengthening the euro against the dollar, raising demand for the previous metal as an alternative investment.

Globally, spot gold prices rose by 1.4% to $1,707.13 an ounce in the Singapore in early trade today.